3/27: Weekly Economic Update from PMG Wealth Mgmt.

March 27, 2023

THE WEEK ON WALL STREET

Modest gains in major market indices masked sharp volatility amid the uncertainty arising from mixed messages emanating from public officials and revived banking fears.

The Dow Jones Industrial Average gained 1.18%, while the Standard & Poor’s 500 added 1.39%. The Nasdaq Composite index rose 1.66% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced by 3.29%.^1,2,3

A TURBULENT WEEK FOR STOCKS

The stock market was unable to find sustained direction as investors weighed comments from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen. Stocks initially rose as banking fears eased following a deal to acquire a troubled Swiss bank. Optimism was further fueled by Yellen, who said the government could intervene to protect depositors if more bank issues materialized.

Enthusiasm faded, however, when Yellen subsequently testified that the Treasury was not working on any blanket insurance for bank deposits and by the Fed’s warning that banking turmoil could shrink lending access — the volatile week ended with sharp intraday price swings, shrugging off revived European banking concerns.

RATE HIKE CYCLE ENDING?

Last week, the Federal Open Market Committee (FOMC) meeting was particularly noteworthy. Fed officials were placed in the difficult position of balancing the banking system's opposing risks of still-high inflation and stressors. The Committee had considered leaving rates unchanged given banking stressors but unanimously voted to raise rates by 0.25%, citing elevated inflation, resilient economic activity, and a strong labor market.⁴

The official announcement hinted that the Fed might soon be done with raising rates while also stating it was too early to ascertain the degree to which the economy could slow from the current banking strains.⁵

THE WEEK AHEAD: KEY ECONOMIC DA

Tuesday: Consumer Confidence.

Thursday: Jobless Claims. Gross Domestic Product (GDP).

Friday: Personal Income and Outlays. Consumer Sentiment.

Source: Econoday, March 24, 2023

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.

______________________________________

THE WEEK AHEAD: COMPANIES REPORTING

Tuesday: Micron Technology, Inc. (MU), Walgreens Boots Alliance, Inc. (WBA).

Source: Zacks, March 24, 2023

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.

Phil Guerrero, CFP®

President

Wealth Advisor

phil@pmgwealth.com

George Maroudas

Wealth Advisor

george@pmgwealth.com

Terry Maziarka

Client Service Manager

terry@pmgwealth.com

847.550.6100

Where is PMG online?

Main site with access to your Account View:

Blog site:

Facebook:

LinkedIn:

Twitter: Just George :)

George on Twitter

Visit our website

WEEKLY QUOTE

"Self-love is not a destination. You're always bucking against the current to just get back to the thing you were born with, which is a basic level of self-respect and self-love."

Melissa Viviane "Lizzo" Jefferson

WEEKLY TIP

Understanding the tax status of your investments can help you arrange your withdrawals to make the most of your retirement funds.

WEEKLY RIDDLE

Name three consecutive days without using the words Monday, Wednesday, Friday or Sunday.

LAST WEEK'S RIDDLE

Five girls took part in a bicycle race. Barbara finished before Vicki, but behind Susan. Katarina finished before Sara but behind Vicki. In what order did they finish?

ANSWER: 1-Susan, 2-Barbara, 3-Vicki, 4-Katarina, 5-Sara.

Know someone who could use information like this?

Please feel free to send us their contact information via phone or email.

(Don't worry - we'll request their permission before adding them to our mailing list)

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested.

This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such.

All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.

MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1. The Wall Street Journal, March 24, 2023

2. The Wall Street Journal, March 24, 2023

3. The Wall Street Journal, March 24, 2023

4. The Wall Street Journal, March 22, 2023

5. The Wall Street Journal, March 22, 2023