View in portrait for best experience

Insights & News

X Marks the Spot

Investments

July 26, 2023

X Marks the Spot

By Aoifinn Devitt, CFP® – Chief Investment Officer

It was a blockbuster cinema weekend as “Barbenheimer” swept box offices, leading to the fourth biggest box office weekend in US history.  However, as for much of the past two years, the real drama lies elsewhere – away from Malibu Dream Houses and Manhattan- and instead, in the halls of the Fed.  This week we again watch for the next move in a captivating chess game – the Fed v. inflation – when inflation surprised with its softball number at the latest print, the Fed, and markets may have been caught off guard.  Did this suggest that monetary policy and higher rates were already working – pleasingly – or was it a transitory “pause” in a relentless upward pressure on prices. Now that the Fed has the next move, it is largely expected to be a rate rise, followed, maybe by a further pause, that lies ahead.  Despite a still-inverted yield curve, it currently does not appear that a “pivot” or change in direction to drop rates, is on the cards.

In equity markets the same euphoric mood lifted stocks such as Alphabet and Meta upon earnings announcements, as chip makers and companies like Visa tied to a “resilient” consumer rallied. This marks the 12th straight day of market positive performance for the Dow – its longest winning streak in more than 6 years, and its highest close since February of 2022.

Source: Morningstar as of 7/25/2023

Meanwhile curveballs, not chess, were the order of the day for Tesla CEO Elon Musk who rebranded Twitter to X in a largely unanticipated move, executed with the usual dash of drama and anti-establishment flourish. The swift dismantling of a well-known internet brand which follows the rebranding of Google (Alphabet) and Facebook (Meta) is another example of the transient and fast-paced nature of our new technology and social media ecosystem.

The summer is proving to be a hot one around the US and as we remain in the dog days, we may see the heady energy of the season drown out some of the niggling concerns.  These concerns have rumbled for months, and signal nothing new – but the confounding strength of the US consumer, the stock market and the jobs picture increasingly seem too good to be true. Like the cheerful blue bird that was once the logo of a firm formerly known as Twitter, these cheerful signals could come crashing to earth.

©2023 Advisory services offered by Moneta Group Investment Advisors, LLC, (“MGIA”) an investment adviser registered with the Securities and Exchange Commission (“SEC”). MGIA is a wholly owned subsidiary of Moneta Group, LLC. Registration as an investment adviser does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is not intended to be comprehensive or exclusive, and is based on materials deemed reliable, but the accuracy of which has not been verified. Examples contained herein are for illustrative purposes only based on generic assumptions. Given the dynamic nature of the subject matter and the environment in which this communication was written, the information contained herein is subject to change. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. An index is an unmanaged portfolio of specified securities and does not reflect any initial or ongoing expenses nor can it be invested in directly. Past performance is not indicative of future returns. All investments are subject to a risk of loss. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. These materials do not take into consideration your personal circumstances, financial or otherwise.

Additional articles

Dive into the latest insights from our expert team with our personal touch.

T is for Tariffs

T is for Tariffs

November 20, 2024

That pesky thing known as the Federal Reserve dashed some cold water on the Trump rally last week, as ...

One Week Later…

One Week Later…

November 13, 2024

Tim Side, CFA – Investment Strategist Déjà vu? One week out from the election results and there is an ...

Reinventing the Gap Year:  Stories from the Trenches 

Reinventing the Gap Year:  Stories from the Trenches 

November 11, 2024

Download the PDF here Today’s teenagers face tremendous pressure. Before the first bell rings freshman...

Monthly Recap – October 2024

Monthly Recap – October 2024

November 8, 2024

Monthly Observations Final Quarter Starts on a Weak Footing Third quarter upward momentum in risk mark...

VIEW ALL ARTICLES

Let’s make every moment count together…