Broker Check

The Weekly Update 2/02/2024

| February 02, 2024

The Weekly Update 2/02/2024

 

“The End of The Story”

 

You won’t see the headline below in your business news because I just made it up!

 “Jerome Powell’s Federal Reserve Succeeded!”

 The Feds publicly stated mandate of 2% inflation has been in the press since Janet Yellen was Chairperson of our Federal Reserve (February 2014-February 2018), but Powell did it!  Here’s the proof, source cited, as always!

                                        

This represents the six-month annualized growth rate of Personal Consumption Deflators, which the Fed uses to measure our inflation rate, versus the Consumer Price Index (CPI).  Both Core and Total Inflation are at 2% and dropping. 

 

During this period of inflation dropping, our economy has increased from $20 trillion before Covid shut down the world, to a touch under $28 trillion as of 12-31-2023, and still growing!

                                         

This snapshot is from CNBC on January 23rd, 2024. 

But without apologizing, here is CNBC’s “Red Banner” headline from almost exactly 24 hours earlier:

                                                   

A crossroads between what?  The people like me who know the business press is not that smart, are super lazy and have one goal, and that is to keep your eyeballs glued to their channel so they can sell you products, and “the others”!

 

So, since a picture is worth a thousand words, let me show a picture of our U.S. economy, as I see it.

                                           

Again, I did not say market valuations go straight up, and I did not say without volatility, yet this data flow, and many more, suggest the good old USA is just waking up from the post Covid hangover.  This could be a 10 ticket ride up the net worth curve.

These are just more fact based and source cited data points that will keep The WSG Team continuing to add lower risk, lower volatility, and best-of-class investments to our client family’s asset allocations.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.