Broker Check
Weekly Market Insights: Markets Weigh Menu of Uncertainty

Weekly Market Insights: Markets Weigh Menu of Uncertainty

April 04, 2022
Share |

Weekly Motivation

Don’t try to figure out what other people want to hear from you; figure out what you have to say.

Barbara Kingsolver – American Novelist

Berthel Insight

We’ve spent a fair amount of time in this space of late, encouraging you to help your clients “stay the course” and to not overreact to the news of the day.  After all, a focus on the news is not a focus on the fundamentals.  And we’ll continue to argue that staying the course is often the best path.

As you think about the quote above, it helps to take that notion just a step further.  Knowing that there may be anxiety around the news events of the day or uncertainty about the magnitude and size of interest rate movements, allows you to prepare your thoughts before you meet with clients.  Have a point of view on oil, interest rates, commodity costs, news events and any other indices you may follow, and figure out what you have to say about them.

But, if you really want to have an impact, encourage your staff and your clients to do the same.  Encouraging clients to come to review meetings with a clear point of view on topics that impact their portfolio will force them to organize their thoughts, concerns, and worries.  You may want to consider even asking them to write their thoughts and concerns down and send them to you prior to your review.  The better organized their concerns are…the easier it will be for you to respond, reaffirm and reassure if necessary.  Oh, and one more “R” word will also likely come into play…the better the communication and the clearer the points of view, the higher the probability of retention…And that should be all the reason you need to encourage your clients to figure out what they have to say.

Bites

Stocks spent last week digesting the sharp gains of previous weeks as investors assessed a tightening yield curve, the war in Ukraine, and an uncertain outlook for economic growth and inflation.

The Dow Jones Industrial Average slipped 0.12%, while the Standard & Poor’s 500 was flat (+0.06%). The Nasdaq Composite index led, picking up 0.65% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.02%.1,2,3

Stocks Pause

Stock prices bounced around following strong gains in two previous weeks as money managers appeared to reposition their portfolios ahead of the first-quarter close. Oil was under pressure all week as prices fell on news that Shanghai imposed a strict lockdown due to COVID infections. President Biden announced a sustained release of oil from the country’s strategic petroleum reserve.

Bond yields reversed their recent climb. The flattening in the yield curve triggered some concerns about economic growth and the possibility of a recession.

Labor Market

With economic growth worries overhanging the market, last week’s employment reports showed continued strong demand for workers. The Job Openings and Labor Turnover Survey reported the number of open positions remained near record highs, with job openings exceeding the number of available workers by a record five million. Afterward, the Automated Data Processing employment report saw private payrolls grow by 455,000 in March, slightly above consensus expectations.4,5

Finally, the government’s monthly jobs report showed that employers added 431,000 jobs in March, lowering the unemployment rate to 3.6%. That’s approaching the 50-year low of 3.5% reached in February 2020.6

This Week: Key Economic Data

Monday: Factory Orders.

Tuesday: Institute for Supply Management (ISM) Services Index. 

Wednesday: Federal Open Market Committee (FOMC) Minutes. 

Thursday: Jobless Claims.

Source: Econoday, April 1, 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

Wednesday: Levi Strauss & Co. (LEVI).

Thursday: Conagra Brands (CAG).

Source: Zacks, April 1 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, April 1, 2022

2. The Wall Street Journal, April 1, 2022

3. The Wall Street Journal, April 1, 2022

4. CNBC, March 29, 2022

5. CNBC, March 30, 2022

6. The Wall Street Journal, April 1, 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.

Copyright 2022 FMG Suite.