Markets, First 2 Weeks…

Two weeks into the New Year has the markets digesting inflation, the Fed, & Omicron.

For the week, markets were down modestly with the Dow retreating (.88%), the S&P 500 (.29%), the Nasdaq (.28%) and the Russell 2000 (.79%).  Foreign stocks gained .18% and Emerging Market Stocks up 2.58%.

The 10 Year US Treasury yield remained steady, ending last week with a yield of 1.77%.

Year-to-date has the Dow down (1.13%), the S&P 500 (2.11%), the Nasdaq (4.8%) and the Russell 2000 (3.7%).

Its crystal-clear inflation is an issue and the Fed is now determined to ease the pressure sooner than later.

For businesses, wage pressure may become challenging.  Profits have risen significantly, however wages and other input costs are now rising at warp speed.

As we begin 4th Quarter Corporate Earnings season, it’ll be important to hear what companies are saying about current profit margins, wages, and input costs.

Growth Stocks VS. Value Stocks

In two weeks, we’ve witnessed a fairly large divergence between growth and value stocks.  According to Morningstar, the Large Growth category is down (5.65) and Small Growth down (7.68%) year-to-date.  On the flip side, the Large Value category is up .97% and Small Value is up .36%.  Not a lot of value upside, however a large difference in just two weeks.

The reason, many believe dividend oriented and other value stocks handle a rising interest rate more favorably than growth stocks.

We’ll certainly keep our thumb on the pulse.  History does not always repeat, however most of the time it tends to rhyme.

How is your portfolio positioned?  Are you aware of your diversification?  Have you rebalanced your portfolio?  It’s a great time to take a look.  To schedule a consultation, either call Ellen at 856-354-3200 ext. 205 or email her at: ellen@retirementrefined.com

Social Security Webinar

On Tuesday January 25th at 6:30 pm, we’ll be holding a webinar in conjunction with Jefferson Health discussing Social Security.  This is appropriate for those who have not yet applied for their Social Security retirement benefit. Understanding the rules is your first step in the decision-making process.

There will be ample time for a Q&A!

To register for the webinar, please RSVP here.

 

 

 

 

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Paul Levin CFP®, ChFC®, RICP®

Retirement Income Certified Professional®