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<\/figure><\/div>\n\n\nOver the last few months<\/strong>, economic data has been suggesting inflation is<\/strong> moderating<\/strong>. This led the Federal Reserve to raise rates by .25%<\/strong> last week. For the first time in a long time, Chairman Powell sounded dovish<\/strong>. Investors took this as an indication that rate hikes are almost over, and Powell will have to lower rates sometime later this year. The markets of course, responded positively.<\/p>\n\n\n\n It will be interesting to hear what Powell says on Tuesday<\/strong> when he speaks<\/strong> at the Economic Club of Washington, D.C.<\/strong> Will he walk back his dovishness?<\/p>\n\n\n\n We also have four other Fed speakers<\/strong> between Wednesday and Friday this week.<\/p>\n\n\n\n I am expecting the Fed to hike rates by .25% two more times, lifting the terminal rate to 5.25%. I do not expect the Fed to lower rates in 2023 unless disinflation really kicks in and the economy stalls. As of now, the economy is going fine, even though we are complaining everything is more expensive.<\/p>\n\n\n Corporate Reports \u00bd Way Over<\/strong><\/p>\n\n\n\n With 50% of the S&P 500 companies reporting<\/strong> 4th quarter earnings, 70%<\/strong> have beaten their lowered estimates. Earnings so far have shrunk by 2.7<\/strong>% for the 4th quarter. This week, 17% of the S&P 500 are reporting.<\/p>\n\n\n\n Most investors expected corporate earnings and guidance to be far worse than we are currently experiencing. Let\u2019s hope this continues and that the soft-landing folks are correct.<\/p>\n\n\n\n Markets So Far!! <\/strong><\/p>\n\n\n\n Will the market continue moving higher?<\/p>\n\n\n\n So far this year, <\/strong> the Dow is up 2.4%<\/strong>, the S&P 500 7.86%.<\/strong> The Nasdaq and small caps are up double digits. This has surprised most investors, including myself.<\/p>\n\n\n\n Bonds are also higher<\/strong> as the Bloomberg Aggregate Bond Index is up 3.02%.<\/strong><\/p>\n\n\n\n Oil,<\/strong> I am happy to say, is staying range bound for now. Oil finished this past Friday @ 73.39\/barrel<\/strong>, down from 80.26 on December 31, 2022.<\/p>\n\n\n\n Natural Gas has plummeted from 4.47<\/strong> on December 31, 2022, to 2.41 as of last Friday.<\/p>\n\n\n\n 2023 has a long way to go, however it will move quickly. It is amazing, this time last year, the media was suggesting the 60\/40 stock\/bond portfolio was dead<\/strong>. Now suddenly, it is a good place to be!<\/strong><\/p>\n\n\n\n The best course of action<\/em><\/strong> is to make sure you have a comprehensive financial plan, and your portfolio is properly aligned with your goals\/desires, represented in your plan. If you have any questions about your situation, please do not hesitate to schedule a consultation.<\/a><\/p>\n\n\n\n![\"\"](\"https:\/\/www.retirementrefined.com\/wp-content\/uploads\/2023\/02\/shutterstock_2184828149.jpg\")
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