The key influences that impacted the market in the last week: increasing oil prices (which unfortunately won’t be good news for gas costs/inflation…) led to a jump in energy stocks across the globe
the labor market is finally seeing a slowdown - job openings are decreasing, unemployment claims are higher than anticipated, and layoffs are persisting→ this caused some market volatility and spurred investors to buy into the defensive sector (stable industries that won’t be largely impacted by inflation like consumer staples, healthcare, and utilities)
bond yields are coming down (which causes prices to go up) → this type of activity generally foreshadows a recession as funds start being moved to safer investments
The things we are watching closely right now for you and all of our clients: is the downtrend in the labor market going to be the first vital step in showing us that the interest rate hikes have actually succeed in cooling down the economy?
further employment data is coming out tomorrow, and next week consumer and producer inflation figures will be released that (hopefully) will determine the course of interest rates going forward
how are Q1 2023 earnings going to fare? A number of names are reporting next week (note that none are in our core Creed Capital models) which will set the tone for what we can expect over the coming weeks when more companies report their profits
Please feel free to reach out to any member of the Creed Capital Management Team if you have any questions!
I have prepared this report to the best of my judgment and professional experience to give you my thoughts on various financial aspects and considerations. The opinions expressed represent solely my informed opinions and may not reflect the views of NBF.
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