Two the Point — U.S. Economy: No Stag, No Flation
June 14, 2024
In this week’s market update, we delve into the latest economic data, emphasizing the absence of stagflation and the implications for the investment landscape.
Key Insights:
- Robust Employment Data: May saw the addition of 272,000 new jobs, surpassing expectations and signaling continued normalization as the labor market is set to come back in balance by year end.
- Cooler Inflation Data: U.S. CPI was flat month-over-month at 3.3% year-over-year. Meanwhile, Core CPI increased a modest 0.2% month-over-month and Core Services posted the smallest contribution to inflation since September 2021.
- Federal Reserve Outlook: Though the bar remains high, the data supports a potential first Fed rate cut in September, and we anticipate a surgical approach to normalizing monetary policy.
- Market Implications: The robust earnings outlook and market broadening present significant investment opportunities for portfolios.
Recent Articles
-
Target Date Funds: What You Need to Know
Planning Perspectives is your guide to navigating the complexities of wealth management with ease. This week, we discuss target date…
-
Two the Point — Signals in the Static
In our weekly video series we highlight important observations regarding the economy and the financial market.
-
Why Understanding Target Date Funds Matters More Than Ever
Most employees in 401(k) retirement plans are not professional investors, and they don’t need to be. However, in a retirement…