December 5, 2022

Weekly Market Update

By Michael McKeown, CFA, CPA - Chief Investment Officer

Weekly Market Update

Chart of the Week

It’s December, which means we’re focusing on holidays, get-togethers, and annual forecasts before the calendar flips to 2023. Strategists are placing point targets on the S&P 500, which we know by definition is nearlyan impossible task. Investment firms are looking closer at bonds; with one of the deepest selloffs in four decades, this is no surprise. As shown below, the yields are near the highs over the past 10 years across most fixed income asset classes. The future looks brighter than a year ago, despite the pain of rapidly rising yields.

Bond Index Yield-to-Worst

What We’re Reading

Higher Bond Yields Can Be Fundamental to a Recession Investing Playbook – PIMCO
The Rise and Fall of Big Tech – MSCI
Likely “Dramatic shift” in Household Formation has “Major implications” for 2023 – Calculated Risk
FTX Collapse was a Crime not an Accident – Coindesk

Podcast of the Week

Jim Chanos on Crypto, Tech and the Golden Age of Fraud – Odd Lots, Bloomberg

The Past Week

The jobs report this past Friday showed more jobs gained than expected and wage growth came in hot. Two key pieces of data showed that inflation data continues to slow. The core price index for personal consumption expenditures was lower than expected along with the producer price index.  This provides more cover for the Fed to shift down to a 50 basis point hike next week.

The Past Week

The Week Ahead

On Monday morning, we had a few data releases. Services for the data from Institute for Supply Management showed continued expansion in the U.S. The S&P Global Purchasing Manufacturing Indices showed contraction indicating that international economies are slowing. Later this week we will see how consumers are feeling with the University of Michigan Sentiment Index.

The Week Ahead

Thank you for reading.

Important Disclosure Information

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Marcum Wealth, or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from Marcum Wealth. Please remember to contact Marcum Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Marcum Wealth is neither a law Firm, nor a certified public accounting Firm, and no portion of the commentary content should be construed as legal or accounting advice. A copy of the Marcum Wealth’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request. Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your Marcum account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your Marcum accounts; and, (3) a description of each comparative benchmark/index is available upon request.