Wow – The weather is BEAUTIFUL! I almost want to stop there but there are other items to cover.
There is a trend toward Zoom meetings or briefer connections than sit down meetings. What say you? Along with Zoom meetings, we are trying to include Tim Wenger so you have a chance to meet and hear from him.
Where is the market going? As of March 13, the S&P 500 is down almost 3% year to date AND there is a lot of movement.
President Trump, Israel and Iran have introduced us to the Strait of Hormuz, which allows 20% of the worlds’ oil to flow to final destinations. Iran is trying to close off the channel and cause oil price pain. It is one thing to think of oil as helping our cars to run, however oil plays a larger role in transportation and products we use regularly. Ouch!
A number of large cap funds are hurting due to investments in AI related stocks. It is my opinion that Artificial Intelligence is still in its’ infancy in terms of adoption. It’s not time to be saying goodbye to AI and the increasing value of companies that aid in its’ use.
In general, the economy is doing OK. There have been lay-offs which seem to be teaching the American worker to be flexible to learning new skills. If I look back over my 30 years as an advisor there have been a lot of technological advances. For example, we waited for the 1099 to show up in our mailbox in order to complete our tax filing. Now they are available on-line (but based on the last few weeks I think we all need to improve accessibility.
Interest Rates – We will have a new Fed Chair in May as Jerome Powell ends his term. I think our President is hoping for an immediate drop in interest rates to heat up the economy. Will we see high 2% and 3% interest rates this year? I don’t think so.
We started the year with the S&P 500 index at 6858. On March 12 it closed at 6672. I believe the index may rebound and close higher than 2025.
I still say the weather is BEAUTIFUL and we are lucky!
NOTE: The views stated in this letter are not necessarily the opinion of Cetera Advisors LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.