Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial News

More Articles  Printer Friendly Version

 

Good And Bad Financial News: Weekly Investment Update

5069 2

The good news is that the Federal Reserve’s preferred measure of inflation may be bottoming, but the bad news is the American consumer’s purchasing power declined by -4.8% in the 12 months ended August 31.

5069 3

The mixed results are captured in this chart showing the Personal Consumption Expenditure Deflator (PCED), the inflation index the Federal Reserve refers to in its policy pronouncements.

The PCED declined three-tenths of 1% in August, which is good news. Inflation peaked at a 7% annual rate in June 2022 and declined in July, and Friday’s release showed the decline inflation was extended in August. That’s good news.

However, Core PCED, which excludes energy and food prices because they are highly volatile, ticked two-tenths of 1% higher in August. Though it was not a surprise, the Core PCE price index is closely watched by the Federal Reserve as it conducts monetary policy. Its rise in August means the Fed’s interest rate increase cycle is not over. The Fed hiked rates five times this year, including three increases of three-quarters of 1% and its aggressive effort to reduce inflation to 2% is widely expected to result in a recession in the months ahead.

5069 4

The Standard & Poor’s 500 stock index closed this Friday at 3,585.62. The index lost -1.51% from Thursday and -2.91% from last Friday. The index is up +60.26% from the March 23, 2020 bear market low and down -25.25% from the January 3rd all-time high.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


Email this article to a friend


Index
On Wednesday, We’ll Know If The Federal Reserve Will End Inflation By Causing A Recession
Technology Drove S&P 500 1.9% Higher Friday, But Look At Tech's Terrible 2022 Loss
Here What To Know To Invest Wisely
Prudence Requires Positioning Portfolios For An Economic Expansion
2022 Was The Worst Year For Stocks Since 2008
4Q '22 Is Closing Strong, But Recession Expected In 1Q '23
A Key Principle In Fruitful Investing
Plan Now For The Next Recovery
Ending Inflation Will Take Months
Economists Predict Lackluster 4Q22 Growth; Fed Algorithm Predicts 4.3%
Amid Darkening News, Positive Economic Signs
Stocks Soared This Past Week But Economic Pain Is Still Ahead
Factors Blurring The Likelihood Of A Recession
Weekly Investor Update
Stocks Rose 4.7% This Past Week, Amid A Bear Market
105 Years Ago In Investing: Conditions Were Much The Same As Today

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2023 Advisor Products Inc. All Rights Reserved.
© 2023 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 markblack@vantagepointadvisor.com |
Contact Us

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA / SIPC.
Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation. This site has been published in the United States for resident of the United States. Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.

Privacy Policy | ADV