We find ourselves catching our breath after yet another week of dominating headlines. Lately, it’s rare not to hear a conversation about the war in Ukraine, inflation, or the cost of gas. And you’re likely hearing economic updates from a variety of news sources.
(Not in the mood for economic stuff? Scroll down to the P.S. for a mental snack.)
We’re here to bring you financial news you can trust without the hype. This week Eagle Wealth founder, Chad Staskal, CFP©, breaks down how current events are influencing the markets. Click here to watch the video.
Run time: 7 minutes, 16 seconds
There’s a lot of uncertainty swirling, and very little we can control in the world. So we focus on the very few things that are within our control: our strategies, our reactions, and our compassion for ourselves and others.
Until next week,
Your Eagle Wealth Team
P.S. A mental snack: A lot of us think creativity is something only certain people are born with. Turns out, researchers say creative thinking can be trained by teaching yourself to imagine radically different possibilities and perspectives. Kind of how writers and artists create fictional worlds and stories.
EWM Teaching at COCC
Do you have a friend or relative who could use some financial planning help? Then we’ve got good news. For over 10 years we’ve been volunteering at COCC, partnering with them on financial planning classes. We’re big believers in the power of education and this is one of the ways we’re able to give back to our community.
This spring, we’ll teach in-person classes at Central Oregon Community College. They’re filling fast so have your friends check out our website for details.
Personal Retirement Analysis Workshop:
4/19 and 4/21 from 6:00 pm – 8:00 pm, plus a one-on-one third class with a financial planner.
5/31 and 6/2 from 6:00 pm – 8:00 pm, plus a one-on-one third class with a financial planner.
**These courses are not intended for current clients. The planning we’ve done with you through personal meetings far exceeds what’s possible in a classroom of students. Please remember though, if you’ve had any changes in your life that may affect your current plan, please call us so we can discuss and make any necessary updates.
The Week on Wall Street
With the Fed embarking on a new course of monetary tightening amid continued fighting in Ukraine, stocks staged a powerful, broad-based rally last week.
The Dow Jones Industrial Average jumped 5.49%, while the Standard & Poor’s 500 gained 6.16%. The Nasdaq Composite index soared 8.18% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 5.17%.1,2,3
After surrendering gains on Monday, stocks surged higher for four consecutive days. The rally was propelled by strong economic data, the outcome of last week’s Federal Open Market Committee (FOMC) meeting, and reports that Russia made interest payments on its sovereign debt, avoiding technical default.
The uptrend began with a drop in oil prices and a lighter-than-expected wholesale inflation report. Stock prices initially buckled following Wednesday’s hawkish FOMC announcement, but turned higher as investors interpreted the Fed’s news as a welcome plan to combat inflation. Stocks extended their gains into the final two trading sessions, cementing their best weekly performance since November 2020.4
The Fed’s Plan
For the first time since 2018, the Federal Reserve hiked the federal funds rate, increasing it by 0.25% and signaling that it expected to raise rates at a faster pace than originally outlined in December. Based on its projections of future fed fund rates, the Fed may implement seven quarter-point rate hikes this year and another three to four next year.5
In a statement following the FOMC meeting, Fed officials expressed rising concerns over inflationary pressures made more acute by the war in Ukraine. Members also indicated that they would soon announce a plan to reduce the Fed’s $9 trillion balance sheet.6
THE WEEK AHEAD
Key Economic Data
Wednesday: New Home Sales.
Thursday: Jobless Claims. Durable Goods Orders. Purchasing Managers’ Index (PMI) Composite Flash.
Friday: Consumer Sentiment.
Source: Econoday, March 18, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
Companies Reporting Earnings
Monday: Nike, Inc. (NKE).
Tuesday: Adobe, Inc. (ADBE).
Wednesday: General Mills, Inc. (GIS).
Source: Zacks, March 18, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.