(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents – 5/15/23
Back Home

Market Currents – 5/15/23

byAscentadmin inChris Lai posted onMay 15, 2023
0
0
Market Currents – 5/15/23
  • A Period of Consolidation. After a positive start to the year, financial markets entered a holding pattern during the month of April.  Banking industry jitters and the debt ceiling standoff were likely contributors to the market pause. The S&P 500 benchmark posted marginal gains for the month, helped by corporate earnings that were down year over year, but better than feared.  In contrast to larger companies, small and mid-size firms have struggled for traction. Fixed income was up slightly (i.e., rates declined modestly).

 

  • Debt Ceiling Drama. The ongoing debt ceiling negotiations remain a source of market agita.  Failure to reach an agreement would be unprecedented, as the US has never intentionally defaulted on its debt.  As the negotiations continue, we believe the economic and political fallout resulting from a default event are unpalatable for all parties, and a deal (possibly in the eleventh hour) remains the most likely outcome.

 

  • Banking Sector. While worries over deposit flight have eased in recent weeks, investors remain concerned over the exposure of banks, in particular regional lenders, to the commercial real estate sector. The work from home movement has lessened the demand for office space, and is devaluing office properties.  Banks appear to be tightening credit availability somewhat to protect their balance sheets.

 

  • Inflation and Monetary Policy. There are signs that global monetary policy and inflation are both hitting a dovish inflection point.  The latest Consumer Price Index headline saw an increase of 4.9% over the last 12 months, the first time the read has a “4” handle since April 2021.  In their latest meeting, the Federal Reserve approved its 10th interest rate increase in just a little over a year, and dropped a tentative hint that the current tightening cycle is nearing its end.

 

  • Corporate Earnings. Q1 earnings season is mostly complete.  Results largely came in better than anticipated, benefiting from several significant tailwinds that helped their bottom-line:  aggressive cost cutting, normalizing supply chains, cleaner inventories, reduced currency pressures, and improved China demand.  Large-cap technology stocks, in particular, saw notable strength.  For the first time in a long time, estimated earnings for the balance of the year are now trending higher, too.

 

  • Market Outlook. With the debt ceiling issue taking on increasing urgency, we believe an eventual deal remains the most likely outcome.  Economic uncertainties abound, however, and the debate on whether the Fed can achieve a “hard” or “soft” economic landing rages on.  Despite the economic pressures, US corporations are once again proving their margin preservation abilities.  Our outlook is cautiously optimistic based on three key factors:  corporate earnings resilience, a Fed rate cycle drawing close to its end, and favorable technical factors (pervasive bearishness and defensive positioning).  We do have some concerns over the narrowness of the market, where the advance is, at present, led by a handful of tech stocks.  We continue to monitor market developments, and will act accordingly, on clients’ behalf.
Share:

Previous

2023 Q1 Recap

Next

Market Currents - 6/16/23

Related Posts

Market Currents – 7/19/18
July 19, 2018
Market Currents – 7/19/18
No Comments
Halftime Report
July 6, 2017
Halftime Report
No Comments
Market Currents – 12/14/21
December 14, 2021
Market Currents – 12/14/21
No Comments

Archives

  • September 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • Market Currents – 9/19/23
  • Decoding Artificial Intelligence and Its Impact on Investing
  • Market Currents – 7/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • Market Currents – 9/19/23 September 19, 2023
  • Decoding Artificial Intelligence and Its Impact on Investing September 8, 2023
  • Market Currents – 7/12/23 July 12, 2023
  • Market Currents – 6/16/23 June 16, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.