Chart of the Week
The line in the sand for qualifying as a ‘bear market’ is a peak to fall drop of 20%. Equities entered this territory over the summer for the eleventh time since 1956. While we only know with hindsight if it was the absolute low, bull markets historically make up for the drop in a big way.
What We’re Reading
10 Takeaways from Matt Levine’s ‘The Crypto Story’ – Bloomberg Businessweek
Animation: The Largest Public Companies by Market Cap (2000–2022) – Visual Capitalist
Private Equity Is Coming to 401(k)s. Be Aware of the Risks. – Barron’s
Lessons on Leadership: Turning the Worst Ship in the Navy into the Best – Farnam Street
Podcast of the Week
The Fed Won’t Rescue the Housing Market – Forward Guidance
The Past Week
The US economy slowed less than expected with gross domestic product (GDP) rising at an annualized 2.6% rate in the third quarter. The global economy showed greater signs of weakness with the Purchasing Manufactures Index (PMI) showing contraction. Consumers continue to feel the weight of inflation with low readings on the confidence surveys.
The Week Ahead
The Federal Market Open Committee meeting is the key event, with interest rates expected to be increased by 0.75%. Investors will look for clues for a downshift at the December meeting to just a 0.50% increase. The reports from the Institute for Supply Management (ISM) along with the jobs report on Friday will be widely watched.
Thank you for reading.
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