Market Minute with Kenny Polcari: Feb. 27, 2023
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| By Kenny Polcari |
Welcome to another episode of Wealth & Wisdom! Let’s get into what happened in the markets last week.
First off, stocks got punished not once, but twice last week … First on Tuesday and then again on Friday, as investors finally realized that inflation will be more of an issue moving forward. This fact was only made clearer by the latest Personal Consumption Expenditures report that came out on Friday.
The PCE report — the Fed’s favorite inflation gauge — is rising more and faster than expected. The month-over-month number came in at 0.6%, and the year-over-year number came in at 5.4% … both higher than last month.
All of this — even the core PCE, which eliminates some of the more volatile sectors — suggested that inflation is not going anywhere anytime soon. Of course, the selling and pullback in the market ensued almost immediately.
By the end of the week, the Dow Jones Industrial Average gave up more than 1,000 points, or 3%; the S&P 500 lost 120 points, which is about 2.6%; the Nasdaq gave up nearly 400 points, or 3.4%; the Russell lost 56 points, or 2.8%, while the Transports gave back 506 points, or 3.3%.
Now, I get that the PCE report was stronger than expected, but the question must be asked: Why did anyone expect to get a different outcome?
The previous reports and inflation data have revealed the exact same thing, so none of this should have surprised anyone who has been following along.
This all brings us to …
The Week Ahead
We have got a lot of economic data coming out this week. There is the durable goods report coming out, and it’s expected to be way down … which is a reversal from last month.
Additionally, we will be getting pending home sales and the Federal Housing Finance Agency House Price Index. Plus, by the end of the week, we will be getting reads from the Dallas, Chicago and Richmond Federal Reserve banks — all expected to be lower, as well.
I go into more detail about what’s coming, what it means for the market and how best to prepare for it all down below, so make sure you don’t miss it!
Click here to watch the video.
Click here to get my rundown, and be sure to check your inboxes tomorrow for the next installment of my weekly video interview series, Wealth & Wisdom.
To your Wealth & Wisdom,
Kenny Polcari
Host
P.S. Wednesday, March 1, Dr. Martin Weiss will reveal a new investor strategy specifically designed for a market plagued by volatility and inflation. This strategy produced 879 winning trades averaging 16% gains in just four days (no backtesting, those are actual trades). For more information, click here.
