Peek of the Week - Weekly Market Commentary for December 4, 2023. Economic activity tends to move in the cycle of: contraction, trough, expansion and peak. At the end of the fourth quarter, the U.S. economy has been in the late cycle stage of expansion, yet this doesn't necessarily mean that we will reach a contraction entirely. Expansions occur when an economy produces more goods and services and our economy has been expanding since mid-year-2022. Expansions end when the economy experiences a shock of some kind. Shocks that cause recessions might include financial market disruptions, international disturbances, technology shocks, energy price shocks and actions taken by monetary policymakers to restrain inflation.
Read MorePeek of the Week - Weekly Market Commentary for October 9, 2023. Financial markets lost ground during the third quarter, but U.S. stocks rallied last week due to corporate earnings and falling inflation. New details on inflation numbers, the labor market, and U.S. employment data. Unemployment rates are nearing historically low levels and labor force participation increased.
Read MoreWhy did the U.S. stock markets finish the week lower? There are few factors that come into play. We're still facing the issue of inflation and after the inflation report was released, investors recalibrated their expectations to include a federal rate increase. Today's Peek of the Week explores three other factors that could be contributing to stocks finishing lower: the U.S. Treasury yield curve percentage, escalating geopolitical tensions between Russia and Ukraine, plus declining consumer sentiments. The reality is that there is no single answer that contributes to a stock market decrease and tremendous uncertainty lies ahead. Also, how nature holds the power to CURE us…
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