December 12, 2022

Weekly Market Update

By Michael McKeown, CFA, CPA - Chief Investment Officer

Weekly Market Update

Chart of the Week

As markets entered 2022, individual investors held 62% of household financial assets in equities. This was a record. After the selloff and outflows year-to-date, the current allocation is 50%. This is just above the average since 1997. Since 2013, the holdings were only lower briefly in 2015 and March 2020. The normalized level could give room for investors to add exposure.

Total Household Equity Exposure

What We’re Reading

5 Things Neuroscience Reveals About How We Work – JLL
Ideas That Changed My Life – Morgan Housel
The Cult of the Retail Trader Has Fizzled – Businessweek
Holiday Eye on the Market: Non-Fungible Trainwreck – JPMorgan
China’s Xi Calls for Oil Trade in Yuan at Gulf Summit in Riyadh – Reuters

Podcast of the Week

Positioning for 2023 with Jurien Timmer – The Macro Trading Floor

The Past Week

The Producer Price Index came in above expectations last week but is down from its highs over the summer. Factory orders outpaced economists’ estimates while consumer sentiment improved.

The Past Week

The Week Ahead

A busy week is ahead as the Consumer Price Index comes out just before the Federal Reserve Open Market Committee decides on the next interest rate move. Another 0.50% increase in the Fed Funds Rate is expected, which is down from the previous four interest rate hikes of 0.75%. We will also see key reports on retail sales and industrial production.

The Week Ahead

Thank you for reading.

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