August 28, 2023

Weekly Market Update

By Michael McKeown, CFA, CPA - Chief Investment Officer

Weekly Market Update

Chart of the Week

Last week was the annual meeting of global central bankers in Jackson Hole, Wyoming. It is mostly wonky debates on economic policy and presentations on papers. Yet because these men and women control the policy interest rates, we must pay attention. Some of the debates were around where the long-term interest rate should be and whether inflation will come back down.

Speaking of inflation, several data points appear to show inflation control measures continue to have an effect. The consumer price index slowed to 3.2% in July, down from 9% last June. The job market also seems to be losing a bit of momentum. The quit rate continues to come down while wages look to be returning to the pre-2021 trend levels., one of the largest online job websites, published its Wage Tracker Index at its lowest levels in over 30 months.

Wage Growth is Decelerating

What We’re Reading

Believing Myths About Aging Makes Growing Old Worse – Time
Bad Timing Cost Investors One Fifth of Their Funds’ Returns – Morningstar
Lines Between Work and Retirement Are Blurring, Research Finds – Plan Sponsor
The Trouble with Forecasting Home Prices – CFA Institute

Podcast of the Week

How Listening Led to the Capture of the Ace of Spades – Invest Like the Best

Last Week

Job openings came in well below estimates, giving bond investors hope that the Fed’s last interest rate hike was in July. Services data continues to show expansion while manufacturing contracted. Home prices continue to climb despite high mortgage rates.

The Past Week

The Week Ahead

On Thursday, prices from personal consumption will be important. On Friday, the payrolls report comes out with an average estimate among economists of 170,000 new jobs. After Labor Day, we will see how the services economy held up in August.

The Week Ahead

Thank you for reading.

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