I think it is a good time for a holiday shortened week of trading.
Last week the Dow lost a bit of ground but the tech heavy NASDAQ dropped almost 15%.
Many pointed into the rise in interest rates hurting tech stocks as investors moved to big capitalized stocks that pay dividends.
With the 10 year Treasury moving to 2.75% we saw mortgage rates climb above 5%.
At least on the positive side of the ledger is the drop in oil prices as WTI has dropped to below $04 per barrel.
If that is all not enough we are going to have the latest measure of inflation coming out this week with most forecasting a number in the 8% range.
That can only mean the Fed will raise at their next meeting in May and probably by 50 basis points or a half a percent.
Many are suggesting that this will be the first of two such half percent raises.
I would say that many are quick to point out that this is way too late and will have little or no impact on inflation.
Many are arguing that the
tight labor market is going to continue to drive the rate of inflation and the Fed raising interest rates has little or no impact.
What can and will have an impact is a recession slowing down the economy.
I would suggest that it is not if but when that happens.
The real question will be how severe and how long?
Then you have the filing of your tax return sandwiched around the Easter weekend.
We just can’t seem to catch a break from our finances.
Due to the holiday you have until next Monday to file and in my case to ask for an extension.
I wish that also applied to not having to send my quarterly estimate but my government needs my money each and every quarter.
It gives me such peace that I know it is being spent well.
On a lighter note, the most interesting man in town, Elon Musk, has declined to be on the Twitter board of directors as it would limit his ability to reek havoc with the company.
He has currently acknowledged owning over 9% and is limited to 14% total.
I am totally a fan of this man and all that he accomplishes.
He is the poster child for free enterprise and what it can do that the government can not.
He is intrigued by obstacles and unafraid to the challenge.
He started building electric vehicles.
Needing a significant number of batteries, he built a plant tot make his own.
Now with Lithium in short supply, he may be mining for it himself.
This is the blueprint for vertical integration that has been celebrated over the years.
It is just impossible for me not to root for this guy.
The more he upsets the cart the cart the better it is for the rest mere mortals.
It would seem to me that we are at an excellent point for an investor to take an accounting of ones situation as it relates to your savings.
Assuming that you have a retirement account, you have made it through the first quarter with a bit of a hit to your portfolio.
Given all that has happened so far this year, I would take that as a win.
I still feel that there is just so much money chasing investments to out perform low returns from bonds that there is still runway left but it is going to be bumpy and quite uncomfortable.
