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Berthel Insights 08-15-2022

Berthel Insights 08-15-2022

August 15, 2022
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Weekly Inspiration – “I am not a product of my circumstances.  I am a product of my decisions.”

-Stephen Covey-

 

Berthel Insight

So much has happened to us over the past couple of years that it can be hard to keep this Stephen Covey quote at the forefront of your mind.  And it is true that much has happened to us…so no argument there.  

The circumstance of the past couple of years has caused most of us to become inwardly focused.  We’ve stayed out of the offices and out of group dynamics…Zoom meeting proficiency has never been higher!  And yet, even that attempt to stay connected has led to more inward focus.  It’s nice to see everyone on a zoom meeting, but it’s not really a connection.  How many of us are reading email, or checking our phones during those meetings?  If we’re honest, it’s the majority of us. 

While zoom and conference calls have been helpful in keeping tasks moving forward, we’ve not seen them be very helpful when it comes to networking.  A connection online by definition can only be so deep.  And why is networking important?

Two big reasons.  One, networking is where culture is built, tested and enhanced.  And we all know that culture eats strategy for breakfast.  And everyone contributes to culture.

And two, your network is your brand.  Branding is traditionally thought of as logos, colors, images, websites…and all of that is true.  But your network is where that brand comes alive and has meaning.  You’ve no doubt felt the impact of your brand on your client network.  The same applies to your professional network.  And over the past 2 years, how much professional network maintenance have you done?  It’s time, if you’re comfortable, to think about conferences again.

Conferences have always had ancillary benefits in addition to the content…it’s those white spaces on the agenda where connections are made, and culture is enhanced.  And it’s those no agenda meetings that often yield the most benefit.  Coffee with colleagues is a big start on that maintenance.  Coming all the way back may be hard, and things that are hard are often made easier in groups.  A little work on the professional network can go a long way to enhancing your brand, your practice, and our shared culture. 

Welcome back!



An improving inflation outlook buoyed investors’ spirits last week, helping lift stocks to solid gains.

The Dow Jones Industrial Average advanced 2.92%, while the Standard & Poor’s 500 rose 3.26%. The Nasdaq Composite index added 3.08% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 2.39%.1,2,3

Lower Inflation Spurs Buying

Stock prices surged mid-week when the U.S. Bureau of Labor Statistics released a better-than-expected Consumer Price Index (CPI) number, with buying momentum building throughout the trading session.

Gains were significant across the board, with technology and small-cap companies leading the market higher. The mid-week rally sent the S&P 500 to its highest level since May and the Nasdaq to its highest level since April. Bond yields fell on expectations that the Fed's pressure to hike rates further might ease. After pausing on Thursday, stocks again ripped higher on Friday, aided, in part, by a report indicating improving consumer sentiment.4

Inflation Cools

The Consumer Price Index in July was softer than expected, with prices unchanged from the previous month thanks to a 4.6% decline in energy prices and a 7.7% drop in gasoline.4

Despite the encouraging results, the CPI report still evidenced upward price pressure. The year-over-year inflation rate remained at 8.5%, while the core CPI (excluding food and energy) came in at 5.9%. Among the index components seeing substantial price increases were food (+10.9% from 12 months ago) and shelter (+5.7%). Producer prices fell 0.5% in July, suggesting that future consumer price increases may continue to moderate.5,6

This Week: Key Economic Data

Tuesday: Industrial Production. Housing Starts.

Wednesday: Retail Sales. Federal Open Market Committee (FOMC) Minutes.

Thursday: Jobless Claims. Existing Home Sales. Index of Leading Economic Indicators.

Source: Econoday, August 12, 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.

This Week: Companies Reporting Earnings

Tuesday: Walmart, Inc. (WMT), The Home Depot, Inc. (HD).

Wednesday: Cisco Systems, Inc. (CSCO), Target Corporation (TGT), Lowe’s Companies, Inc. (LOW), The TJX Companies, Inc. (TJX).

Thursday: Applied Materials, Inc. (AMAT), NetEase, Inc. (NTES).

Friday: Deere & Company (DE).

Source: Zacks, August 12, 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.

Footnotes and Sources


1. The Wall Street Journal, August 12, 2022

2. The Wall Street Journal, August 12, 2022

3. The Wall Street Journal, August 12, 2022

4. CNBC, August 10, 2022

5. CNBC, August 10, 2022

6. CNBC, August 11, 2022

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.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

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