Posts by Steve Lennart

INVESTMENT COMMITTEE COMMENTARY August 2023 Stocks fell in August based on the two common market themes of this year: concerns regarding inflation and uncertainty on Fed policy and the trajectory of interest rate hikes. The headline Consumer Price Index (CPI) has now dropped to 3.3%, significantly lower than the inflation peak of 8.9% in June 2022. …

INVESTMENT COMMITTEE COMMENTARY June 2023 June was a strong month for stocks. The Federal Reserve (Fed) did not raise interest rates in June. Instead, the Fed opted to step back and assess additional information. Inflationary pressures showed signs of cooling with the twelve-month Personal Consumption Expenditures Index (PCE) coming in at 3.8%. The Consumer Price Index (CPI) had…

INVESTMENT COMMITTEE COMMENTARY May 2023 In May, investors continued to evaluate inflation data and the probabilities for the Federal Reserve’s (Fed’s) next interest rate policy moves. The Fed raised the federal funds target rate by 25 basis points in May, which was expected. It remains uncertain whether the Fed will raise interest rates again in June. Some…

INVESTMENT COMMITTEE COMMENTARY April 2023 Investors weighed three key issues in April: The Federal Reserve’s (Fed’s) next interest rate move, corporate earnings, and the financial strength of U.S. regional banks. The Fed did not meet in April but did raise interest rates by 25 basis points on May 3rd. The Fed hinted at a pause of further…

INVESTMENT COMMITTEE COMMENTARY March 2023 March began with investors remaining focused on inflation and potential interest rate hikes, but the sudden failure of Silicon Valley Bank, at the time the 16th largest bank in the United States, shifted investor focus to a potential banking crisis. Signature Bank of New York failed just days later which…