The previous week’s rally did not continue into last week!
Last week all of our asset classes saw a bit of a decline. This was not a surprise to us. The CPI (consumer price index), showed a slight increase in inflation numbers from last month. AND there was the pending Fed meeting this week which contributed to the unease in the market. The Fed pays close attention to the CPI and with the slight tick upward with inflation, the markets were anticipating one of the highest interest rate hikes in years.
Well, the rate increase was announced today at .75%. The downturn in the markets we saw last week was in large part to this expected increase in interest rates. On the bright side, these rate hikes will hopefully continue to aid in the slowing of the inflation we are feeling in our pocket books.
See you all next week!
All performance reported in the graph and performance references are from the following index list: DJ Industrial Average TR USD, S&P 500 TR, DJ US TSM Large Cap Growth TR USD, NASDAQ 100, Technology NTTR TR USD, DJ US Health Care TR USD, DJ US TSM Large Cap Value TR USD, DJ US TSM Mid Cap Growth TR USD, DJ US TSM Mid Cap Value TR USD, DJ US TSM Small Cap Growth TR USD, DJ US TSM Small Cap Value TR USD, FTSE NAREIT All Equity REITs TR, DJ Gbl Ex US Select REIT TR USD, Bloomberg Commodity TR USD, MSCI EAFE NR USD, MSCI EAFE Growth NR USD, MSCI EAFE Value NR USD, MSCI EAFE Small Cap NR USD, MSCI EM NR USD, BBgBarc US Corporate High Yield TR USD, FTSE WGBI NonUSD USD, JPM EMBI Plus TR USD, BBgBarc US Govt 1-3 Yr TR USD, ICE BoafAML 1-3Y US Corp TR USD, BBgBarc Intermediate Treasury TR USD, BBgBarc Interm Corp TR, BBgBarc US Treasury US TIPS TR USD. This material has been prepared solely for informational purposes based upon data generally available to the public from sources believed to be reliable. All performance reporting is for indexes, not specific securities. Performance of specific securities will vary from indexes. Past performance is not an assurance of future results. Indexes cited are provided to illustrate market trends for certain asset classes. It is not possible to invest directly in an index. Indexes do not reflect individual investor costs of trading, expense ratios & advisory or other fees