Tune out the noise and focus on what you can control, like your time horizon, risk tolerance, and goals. Because I can promise you one thing: there will be several more headlines in 2023 that will cause stock prices to react.
The inflationary impact of higher energy costs can also tip the economy closer to a recession as consumers may cut back on spending when facing pain at the gasoline pump, making the Fed's efforts of tightening monetary policy to fight price increases more difficult.
Quality stocks have historically exhibited higher long-term returns and lower volatility, creating an attractive risk-return profile for core holdings in investors' portfolios.
Warren Buffett's quote, 'Remember that the stock market is manic depressive,' highlights the importance of not getting caught up in short-term market fluctuations.
The stress and uncertainty of the recent banking crisis has reinforced four ETF truths: investors gravitate to ETFs during times of stress as valuable price discovery tools, ETFs provide additive liquidity beyond what's available in the primary market, ETF trading doesn't have an outsized impact on trading of underlying securities, and use cases for ETFs now range from traditional to complex.
While inflation may have peaked last summer, the future road may not be a one-way street to the downside, and the Fed will continue to operate under the assumption it 'has more work to do' to bring inflation under control.
The Federal Reserve is at a bit of a credibility crossroads, supervising and regulating the banking system as a means of protecting consumers is one of the Fed's most important roles.
The latest US home price data reveals a gloomy picture, with prices declining for six consecutive months with no relief in sight.
Investors who prioritize ethical factors when evaluating potential investments can benefit from a portfolio that outperforms the market. At Interactive Advisors, we believe that Ethical Leadership as a factor that drives returns is here to stay, and our Ethical Leadership Portfolio has shown superior returns since its inception in 2020.
The jobs report, to begin with, was a direct challenge to the 'inevitable recession' narrative, with the completely unexpected surge of more than a half-million new jobs being created in January, combined with the lowest unemployment rate since 1969.
Fresh earnings reports fueled further gains, with positive earnings surprises from several big-name technology companies that benefited the larger universe of Nasdaq-listed high-growth companies.