George Hosfield, CFA, discusses Ferguson Wellman's quarterly strategy titled, "Inflation's Flame Flickers," which addresses the narrow market leadership, the impact of higher interest rates on inflation and how assets are priced at this stage of the economic cycle.
George Hosfield, CFA, discusses the firm's quarterly strategy titled "Stalemate," which highlights the Fed's ongoing battle to tame inflation along with our views on the health of the banking industry and capital market expectations for the balance of the year.
Director and Chief Investment Officer George Hosfield, CFA, discusses the Fed raising interest rates, peaking inflation and our view on equities and volatility across all asset classes in our Investment Strategy titled, “Balancing Act.”
The economic data released month after month follows a rhythm we have become quite accustomed to, and the Consumer Price Index (CPI) release is an integral part of this familiar cadence. July’s CPI report showed U.S. inflation rose 3.2% in July from a year earlier.
For years, our clients have worried about the ballooning debt situation with the U.S. federal government. Fitch Ratings, which is one of the three main credit rating agencies, verified these worries earlier this week when they lowered the U.S. government’s credit rating from AAA to AA+. While many called this a surprise move, others have been expecting this for some time.
This week, all eyes were on the inflation report and the subsequent Federal Reserve announcement a day later. Since these were the last announcements of their kind for 2022, market participants were paying close attention, with the hope of gaining some insight into what the rest of the year might look like for markets.
U.S. markets have begun the third quarter with positive returns, erasing some of the losses that occurred in the first half of the year. Specifically, the market has recouped about one-fourth of the year-to-date loss in stock prices. It remains to be seen how long this rally will last, but there have been a couple of positive developments, despite a palpable slowing in economic growth.
Today the employment data for the month of June was released and was stronger than analysts’ expectations. Nonfarm payrolls increased 372,000 in the month of June, well above the estimate of 265,000. In addition, average hourly earnings growth moderated on a month-to-month basis, which should help the inflationary pressures in the economy.
Director and Chief Investment Officer George Hosfield, CFA, discusses the Fed raising interest rates, peaking inflation and our view on equities and volatility across all asset classes in our Investment Strategy titled, “Balancing Act.”
Jason Norris, CFA, was interviewed on Boise Public Radio about the Idaho economy and recent market activity.
Markets sold off this week, and dramatically on Friday, as new inflation data showed price increases reaccelerated in May. This morning, the Bureau of Labor Statistics reported that the Consumer Price Index (CPI), which is the most well-known measure of inflation, increased 1.0% in the month of May and increased 8.6% compared to the year-ago period. This number marks a new 41-year high for inflation.
Investors buffeted by the ongoing correction in stocks and bonds could be forgiven for asking this question. The Fed’s aggressive half a percentage point increase in interest rates last week coupled with another report of elevated inflation earlier this week are serving to continue the turbulence investors have experienced so far this year.
On Tuesday, inflation numbers came in hot across most components. According to the release of March inflation figures, consumer prices have risen by 8.5% over the past year and 1.24% month-over-month, a rate of increase not seen in more than 40 years.
The second quarter 2022 issue of Market Letter, our quarterly investment publication, titled, Kryptonite.
Chief Investment Officer, George Hosfield, CFA, discusses our second quarter Investment Strategy titled, “Kryptonite.”
With an eventful first quarter now in the history books, we can safely say that the elevated levels of volatility that we predicted for 2022 are now in play.
During our collective years in investment management, we’ve come to use several phrases over and over. Our long-time clients may begin to roll their eyes as we repeat an oft-used phrase, “The Fed is raising rates for the right reason.”
The Federal Reserve has maintained near-zero interest rates for nearly two years, and by now, it is clear this extraordinary policy is no longer needed. Over the last several months, continued elevated inflation readings, coupled with a tightening labor market, have led the Fed to suggest rate hikes are coming both sooner and faster than previously expected.
Inflation was front and center this week with the release of the December Consumer Price Index (CPI) report. Inflation of 7% Headline and 5.5% Core (ex Food and Energy) were in line with consensus expectations.
As we plan for retirement, we also start to contemplate the reality of increasing healthcare expenses. Here are some important considerations in your planning.
Inflation continues to be in the news and is top of mind for clients. This week, the September Consumer Price Index was reported 5.4% over the previous year, an inflation number well above where it was reported prior to the COVID-19 crisis.
