Hey, Risers!
Well Fed.
Earnings-palooza continues, and investors dined not only on corporate reports, but also on economic data and the results of the latest FOMC meeting. There was less indigestion than many thought given such a huge menu.
99rises performance: Our three main long-short blocks are flat to up in 2023 after outperforming the Nasdaq 100 Index by 23-38% in 2022.
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Economy & Markets
Higher for longer.
See and Raise
The Federal Reserve decided to raise rates by 25 basis points this week as expected. Chair Jerome Powell repeated his usual warnings about the dangers of being complacent about inflation and indicated that cuts to interest rates were very unlikely this year. Nevertheless, investors were cheered when he suggested that the central bank could hold rates steady in September.
Our take: We didn’t hear as many positives as negatives. We’re not convinced the inflation fight is won.
Still Growing
Despite recessionary concerns, Q2 GDP grew at 2.4%, well above expectations of 1.8%. The core PCE Price Index (one of the Fed’s favorite inflation indicators) grew by 3.8%, down from last month’s 4.9% and below estimates of 4%.
Our take: This economy has proven to be very resilient.
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