Would you have believed us if we had told you on January 1 that the S&P 500 would be up nearly 10% year-to-date after last year’s 25% jump?
The End of an Era
Hop, Skip and a Jump?
At Ferguson Wellman, we are nearing the end of our Mid-Year Update events season, where we present updates to our yearly Investment Outlook and deepen our connections with clients and the community.
Changing of the Guard
In an otherwise quiet week on Wall Street, the benchmark S&P 500 turned the page on one of its longest-running bear markets. Rebounding by over 20% from its October lows, the blue-chip index has officially surpassed the threshold marking a new bull market. What is notable about the advance from last fall’s lows is how few stocks have participated in the upturn.
A Year Like No Other
The recent intensity of economic and earnings data matched the temperatures outside this week. In absolute terms, inflation remains too hot and while there is some evidence of moderation, the Federal Reserve doubled down on its commitment to return inflation to its 2.0% long-term target, suggesting further interest rate hikes through the end of this year.
Money Talks
This week, as we usher in a new administration, there has been an increased focused on another stimulus package to keep the economy on solid footing. While the lame-duck session of Congress recently passed a $900 billion stimulus and checks have started being issued, the current administration is looking for an additional $1.9 trillion in stimulus. While negotiations will most likely bring this number lower, clients are voicing concerns about the national debt.