Prosperity Partners Blog
Stubbornly High Inflation
The release of the September Consumer Price Index (CPI) offered more sobering news, as inflation continues to run hot. The U.S. Bureau of Labor Statistics (BLS) reported the CPI for September rose 0.4% versus August. The core CPI, which excludes food and energy, rose 0.6%
Cracks Gradually Form in the Job Market
Last week, the U.S. Bureau of Labor Statistics (BLS) reported that job openings fell by 1.1 million in August to 10.1 million, the second steepest decline on record. Yet, openings remain quite elevated, as illustrated in Figure 1. It’s not that all workers have their pick of jobs, but many businesses have struggled to fill open positions. We see it in the never-ending stream of help wanted signs.
The Dollar vs The World
The dollar has soared to its highest level against the euro in 20 years. It has risen to its highest level against the Japanese yen in 30 years and recently hit a record high against the British pound, according to CNBC.
The U.S. Dollar Index is an index (or measure) of the value of the U.S. dollar relative to a basket of foreign currencies. As the graphic illustrates, the index is at a 20-year high.
FDP Special Market Commentary
We’re in a period of high market volatility and you may feel helpless to do anything but watch your hard earned portfolio decrease in value. Although you might feel a high level of fear about entering the market with new funds, if you’re sitting on cash inflation may be working against you.
A Long Plateau
Chatter that the rate of inflation was on a downward path appears to have hit a snag after the August release of the Consumer Price Index (CPI). Core inflation isn’t rising on a monthly basis, but it isn’t slowing either. As the graphic suggests, it’s been a long plateau.
When Good News is Bad News
Stocks performed well against the backdrop of modest economic growth, which fueled corporate profit growth. Low inflation and modest economic growth limited interest rate hikes by the Federal Reserve, further underpinning equities.
How to Best Position Your Company for Sale
Just as you can prepare a home to maximize the sale price, so too there are many ways to improve the valuation of your company. Some changes may only be on paper, others require looking at how you do business.
Quarterly Market Summary and Outlook – July 2022
The U.S. economy remains on stable footing, supported by a strong labor market, healthy balance sheets, and solid consumer spending.
FDP Special Market Commentary
Behavioral Finance and the underlying study of “investment biases” forms a foundation for the tug-of-war that investors sense between their analytical brains and their emotions. Here are seven common biases that may be impacting your investment performance.
FDP In The News
The WSJ published an article about the increases in prices for Universal Life and Term Insurance products resulting from disruption to the bond and mortgage markets.
Quarterly Market Summary and Outlook – April 2020
Coupled with low interest rates and forecasts for accelerating profit growth, stocks repeatedly hit new highs.
Quarterly Market Summary and Outlook – January 2020
The decade began under a dark cloud. The U.S. was climbing out of the Great Recession, and many wondered whether the economy might flounder for years.