Posts by Ed Raffenetti
Cybersecurity Awareness
Cybersecurity remains a hot topic in the financial industry. In the past few years, our professional and personal lives have become more dependent on the internet than ever. Hackers, cyber-criminals, and fraudsters are exploiting unpatched software, or using social engineering to steal your data. With targeted exploits and attacks on the rise, everyone wants to…
Read MoreComments Regarding Silicon Valley Bank and Charles Schwab & Company
Comments Regarding Silicon Valley Bank and Charles Schwab & Company What Has Happened? Silicon Valley Bank (SVB) was a “bank of choice” for many venture capital and startup companies to deposit their cash balances. SVB used those deposits to make loans and purchase U.S. Treasurys to earn interest income. As the economic environment has become…
Read MoreA Pause in Disinflation
INVESTMENT COMMITTEE COMMENTARY February 2023 After a strong January, both stocks and bonds had negative returns in February. January presented investors hope of easing inflation, but February revealed increasing inflation pressures. The Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) Price Index rose 0.5% and 0.6%, respectively, the most since last June. Overall,…
Read More2022 In Review/2023 Views
INVESTMENT COMMITTEE COMMENTARY December 2022 The positive momentum of October and November for stocks and bonds faded in December. Global central banks signaled that they were still committed to aggressively hiking rates. Economic data showed clear signs of slowing growth, and several negative earnings announcements raised concerns of an earnings recession in 2023. In December,…
Read MoreEconomic Reversals – Hints of a Cooling Economy
INVESTMENT COMMITTEE COMMENTARY November 2022 Following comments by Federal Reserve (Fed) Chairman Jerome Powell, stocks and bonds rallied in November. The S&P 500 rose for the second straight month, up 5.6%. Foreign developed equities and emerging markets also rebounded with strong gains of 10.9% and 14.0%, respectively. Emerging markets had their best monthly performance since…
Read MoreFixed Income Yields
INVESTMENT COMMITTEE COMMENTARY October 2022 October saw stocks close higher, the first monthly gains since July. The S&P 500 rose 8.1% and foreign developed equities gained 5.5%. However, emerging market equities fell 4.0%, in part, due to the Chinese Communist Party granting President Xi Jinping a third five-year term as president and general secretary. This…
Read MoreLooking Forward
INVESTMENT COMMITTEE COMMENTARY September 2022 Inflation remains stubbornly high but there are signs the rate of increase is peaking. Supply chain problems are being resolved, inventories are building, and slower economic growth is weakening demand pressures. The price of crude oil is down more than 30% from the June high and several key commodity prices have returned…
Read MoreLate Economic Cycle Commentary
INVESTMENT COMMITTEE COMMENTARY August 2022 Inflation remains high and the Federal Reserve (Fed) knows U.S. money supply growth, which surged a historic 25% between 2020-2021, must be curbed further if inflation is to moderate. Fed Chair Jerome Powell announced an increase in short-term interest rates of 0.75% in July and commented the Fed was committed…
Read MoreThe Recession Debate and Some Rays of Hope
INVESTMENT COMMITTEE COMMENTARY July 2022 A welcome relief rally brought positive performance to most equity and fixed income asset classes in July. The S&P 500 and foreign developed equities gained 9.2% and 5.0%, respectively. Emerging market (EM) equities declined 0.8% with lingering issues in China, a rising U.S. dollar and falling capital inflows to EM…
Read MoreMid-Year Commentary
INVESTMENT COMMITTEE COMMENTARY June 2022 In June, CPI inflation rose by 1% to 8.5%, its highest level since 1981. Inflation expectations of consumers, measured by the University of Michigan, rose to a 14-year high. The Reuters/University of Michigan Consumer Sentiment Index dropped to its lowest level since 1980. Falling consumer sentiment contributed to plunging market…
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