Today’s post will be short, as tomorrow is a holiday leading into a long weekend—and next week is vacation! I have to admit, I am ready to get out of the office for a week. As much as I love Commonwealth and Massachusetts, a warm week at the beach isn’t bad either. Add in a chance to see my parents for Easter, and I’m very glad to be heading out.
News
Should We Worry About Stagflation?
Following up on yesterday’s piece on inflation, I wanted to dig deeper into another topic I’ve been hearing about recently: stagflation. When people look at inflation and the fears of slower growth, the idea of stagflation comes back to life from the 1970s and 1980s. But that was a long time ago when few of us were paying attention to economics. So it’s worth going back to basics and thinking about what stagflation is before we start to worry too much.
Is Inflation Peaking?
The most recent inflation data came in this morning, with the Consumer Price Index (CPI) up sharply again. The headline index was up by 1.2 percent for the month and by 8.5 percent for the year (a 40-year high). On the face of it, inflation is approaching a crisis. What if it keeps on rising?
Monday Update: Service Sector Confidence on the Upswing
Several important economic updates were released last week, with the ISM Service sector confidence report serving as a highlight. The report showed that service sector confidence rebounded in March following Omicron-related declines to start the year. This will be a busy week of updates, with a focus on March’s inflation reports as well as a look at retail sales, consumer confidence, and industrial production.
Monthly Market Risk Update: April 2022
My colleague Sam Millette, manager, fixed income on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Market Risk Update. Thanks for the assist, Sam!
Markets rebounded in March, but it was not enough to offset earlier losses in January and February. The S&P 500 gained 3.71 percent in March, while the Dow Jones Industrial Average (DJIA) rose by 2.49 percent and the Nasdaq Composite increased by 3.48 percent. But the selloffs in January and February caused all three indices to end the quarter in negative territory. Despite the March gains, the S&P 500 lost 4.60 percent for the quarter, while the DJIA dropped 4.10 percent and the technology-heavy Nasdaq dropped 8.95 percent. The market decline to start the year is a reminder that risks remain that should be monitored going forward.
What the Fed Meeting Minutes Mean for Investors
The most recent news bomb taking markets down was the release of the minutes from last month’s meeting of the Fed. The Fed raised rates, as was amply reported. In the following press conference, Fed Chair Jerome Powell was widely reported to be more hawkish, which is to say, likely to raise rates further. But what we did not know until yesterday was just how emphatic the decision was for the entire committee.
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!
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.
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