January 29, 2024

Weekly Market Update

By Michael McKeown, CFA, CPA - Chief Investment Officer

Weekly Market Update

Chart of the Week

Just two years ago, more people were quitting their jobs than at any time in the prior two decades.

A growing economy and fewer people entering the workforce created a bidding war. Wage increases followed.

The chart below shows that the quit rate leads wages by six months. With quits continuing to fall, wages growing at a slower pace is likely. This will presumably continue alongside the lower inflation trend witnessed over the past year.

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Quits Lead Wages by 6 Months

What We’re Reading

Information That Would Get Your Attention – Morgan Housel
The Best Investments for Taxable Accounts – Morningstar
Howard Marks Investment Memo: Easy Money – Oaktree

Podcast of the Week

The Best Way to Sell Your House – Masters in Business

Last Week

The fourth quarter gross domestic product (GDP) beat expectations, up over 3% after the third quarter grew 5%. Consumers’ spending habits continue to exceed expectations, though durable goods orders disappointed in December. Prices continue falling closer to the Fed’s target as the annual change in personal consumption expenditures fell to 2.6%.

The Past Week

The Week Ahead

On Wednesday, we will read into the Federal Reserve’s post-meeting statement for clues on when the interest rate-cutting cycle might start. The payroll report on Friday will be an important data point to see any shifts in the jobs market

The Week Ahead

Thank you for reading.

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