We saw a bounce in stock markets for March, but everything was down between 3 percent and 8 percent for the first quarter. The reasons for this were twofold. First, with inflation at a 40-year high, the Fed was forced to raise interest rates. Second, the Russian invasion of Ukraine unsettled markets. Still, there were some positives. Hiring was strong, and business confidence and investment were healthy.
News
Tremors in the Housing Market
The housing market has shown exceptional strength after rebounding from the sharp but brief decline in the early months of the pandemic. Many factors have contributed to this—exceptionally low mortgage rates, aggressive stimulus, and the need for more housing as work and childcare were brought home. Now, all of these factors are diminishing as the cost of living is rising. As a result, the housing market might be heading for a slowdown.
Covid-19 Checkup
For the past couple of weeks, we’ve been talking about two things: the war in Ukraine (and its effects) and inflation and the Fed. These have very much been the hot topics, and deservedly so. But with a lull in the news on both, it’s time to check back in on Covid, which has not gone away.
Will Inflation Remain High?
Last week, we looked at what inflation actually is—and where it is coming from. As we noted then, three categories (housing, transportation, and food and beverages) account for three-quarters of all spending. So, if we talk about inflation, this is really what we are talking about. As we also noted, those categories have grown faster since the start of 2021, especially transportation. But none of that tells us what will happen over the next year or so. To determine that, we need to take a closer look.
Monday Update: Is Business Spending Starting to Slow?
February’s preliminary durable goods orders report was the only major economic data release last week. The report showed that durable goods orders fell by more than expected during the month, which could be a sign that business spending is starting to slow. This will be a busier week, with scheduled reports providing updates on consumer and manufacturer confidence, personal income, personal spending, and the March jobs report.
Protecting Portfolios Against Inflation
Brad here. As we talk about inflation (and we will have more to say next week), the real question for us, as investors, is what we should do with our portfolios. No one is more qualified to answer that question than Pete Essele, who runs our Preferred Portfolio Services® Select asset management program. Here are his thoughts—have a great weekend!
Olivia has joined Riverstone Wealth Partners providing knowledge gained from her 15 plus years in management. Olivia has provided services within the financial industry, mortgage industry, and in the non-profit sector. Olivia thrives on providing stellar customer service, accomplishing all goals set before her, and doing the right thing. Olivia’s degree in Business Management allowed her to take on roles that ultimately led her to Riverstone Wealth Partners. Olivia is currently pursuing another degree with an emphasizes in Human Resources, which she has learned over time… is her passion!
Director of Operations
Ashley has been working in the customer service field since she started her first job at age 16. For the past ten years she worked in an office setting handling accounts payable and receivable as well as some receptionist work. She is very excited to learn more about the investment field.
Alec joined Riverstone after starting out his post college career on the operations side of an international logistics company working as an account executive. Graduating with a BA in Economics from the University of Illinois at Urbana-Champaign, he quickly developed a strong interest in the financial world. A lifetime resident of the Chicagoland area, Alec is an avid fan of his hometown sports teams. He is also an enthusiast of outdoor activities like fishing, camping, and hiking whenever possible.
Carol has a wide variety of experiences and has worked mainly with not-for-profit organizations. She spent 20 years in fundraising and 15 years teaching in the Illinois school system while she raised her younger children. Carol lives in Sugar Grove with her husband, Ron, and their Golden Retriever, Charley. She has four children and two grandchildren. When she’s not working, Carol enjoys spending time with friends and family, running, fishing, bible study, and watching her grandchildren play sports.
Wealth Advisor
Wealth Advisor / Registered Principal
Wealth Advisor
Wealth Advisor / Registered Principal
Wealth Advisor
Wealth Advisor Assistant
Registered Relationship Assistant