March 2023 Insights for Investors
By Maurice Stouse, As we head into March, we are seeing some early trends or patterns for investors. First among these are short term interest rates. The Federal Reserve raised rates to 4.75% in early February. That was .25% smaller rate increase than their previous meeting. We are seeing short term savings rates and CDs yielding at or near this level as well. Investors are left wondering if rates will continue to climb. The Federal Reserve is keeping a close watch on inflation which, after the February report, sees prices as going sideways for now (as opposed to continuing to go down). Digging deep into those numbers we see that goods are down to 3% and wages are now growing at 4.3%. The cost of services continues to keep resilience in the face of inflation. Wages may continue to wane as the white-collar labor force is seen as over employed and the same for many blue-collar professions. Restaurant and hospitality businesses continue to be seen as under employed. There has been a lot of news about layoffs in the tech sector. While significant those workers account for less than 2% of the workforce. Many of those returning to the workforce also see being productive and industrious – a key to a happy and fulfilled life. We are also learning more about the Great Unretirement or the growth of the so called “unretiring”. Many Americans who retired during the pandemic are coming back to work. That is a sign of...
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