Reviewing market performance and upcoming CPI data for warning signs
September 12, 2022
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Cody Moore, and I am a Wealth Advisor at Wealth E&P’s Alpharetta, Georgia office.
Last week, the markets rallied; the three major indices were all positive for the week with the NASDAQ leading the way up just over 4%. This week, all eyes will be fixed on the CPI data and the inflation data being released on Tuesday. The consensus is that it's going to come in at 8% for the year-over-year number.
I want to review the City National Rochdale speedometers and the economic data from the above chart. As you can see, when we reviewed towards the beginning of the summer, there were some of the indicators that had gone yellow, but they generally were green and yellow. It was a positive overall consensus.
As we jump forward to September now in the above chart, you can see that most of them are in yellow and some have gone fully red. These are forward-looking economic indicators, so what that tells us is this: there is trouble on the horizon.
If you're a Wealth E&P client, we do have a bear market strategy in place and we are continuing to adjust to current market conditions there. If you're not a Wealth E&P client, now would be a great time to make sure you review your investment allocations and meet with your advisory team if you have one. Especially if you're nearing or in retirement, it's crucial to make sure you have a plan in place. If you're a younger investor, now will actually be a great time as well; going forward the next 12 months or so, make sure to continue contributing to your retirement or long-term accounts if you’re able so you can dollar cost average in at what will likely be lower figures.
If you have any questions for our team, would like a second opinion on your investments, want a risk profile, or would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our next Market Minute! We hope you all have a great week.
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