The big trade back last week
Last week we saw the market trade back in multiple indices and we had quite a few world news events occur last week that may have influenced this. All the economic restrictions placed on Vladimir Puttin and Russia is causing jitters in the markets. Also, Argentina gave strong indications that they are not financial sound.
The big topic is inflation and what Janet Yellin and the Federal Reserve is talking about. There is a lot of talk concerning when to raise interest rates. As we at Fi Plan Partners maneuver through all this information that is impacting the markets, we are determining whether it’s a good time to move into the markets or take profits and move into cash (more in the video).
Interest rates at some point will have to move up and that will impact the bond market which is why we’ve moved to positions with short term maturities. If corporate earnings continue to do well, the stock market might take a breather and not plow back into it.
Is there momentum in the economy?
What is really encouraging is watching the revenue numbers coming from large corporate America. Through becoming more efficient and cutting costs, companies are driving up their revenues. What we are seeing now is that people are starting to buy again now that corporate America is inching back up to where it needs to be. With over 75% of corporations having turned in their earnings report, the numbers are looking very good which is an indication of momentum in the economy (more in the video).
We are seeing corporate America starting to feel better about their back log of products and about who is buying and who is about to buy. That is why we track the trucking and railroad shipping industries. Businesses have to order in advance and have it shipped to them before they can use it or sell it. This tells us what is about to happen.
Sectors with momentum in the economy
The upward momentum in the economy is very broad based. Momentum is coming from healthcare, technology, telecom, consumer staples, and consumer discretionary sectors. Higher end retail numbers are coming out in the next week or two and that will give us a good idea on where our economy is headed.
We believe the U.S. is looking very strong economically. The international economy might not be looking so good, but there are many great things going on here in the United States. As we comb through all this data we are committed to keeping you updated to help you live with confidence.
Please send us your comments and concerns or call us at (205) 989-3498.
Greg Powell, CIMA
Email Greg Powell here
Ashley Page, JD, MBA
Senior Vice President
Email Ashley Page here
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Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.