We made it through the first quarter with surprisingly strong results.
The S 500 rose 7% in the first quarter, which is the best three-month stretch since the fourth quarter of 2011.
This came with the banking crisis and inflation that is cooling, but just won’t go away.
The inflation readings announced Friday haven’t taken into account the financial crisis which will be reflected in readings released just before the next Fed meeting.
And if it wasn’t enough last week, there was the indictment of former President Trump which apparently was insignificant economically.
The weekend, however, did bring news that OPEC would be cutting a million barrels a day sending oil prices higher.
It had appeared that the Administration would replenish the Strategic Oil Reserve with crude prices below $70, but that may be put on the back burner for a while.
Should crude prices move back up, it will hurt any efforts to stem inflation.
I do think that the lack of security in our financial system may push investors to put cash in Treasuries.
Equities had held the attention of investors, but fear is a great motivator along with greed with investors.
The ability to obtain almost 5% will catch the focus of some investors.
This could become a reality should the Fed add another couple of 25 point increases in the next several months.
One thing that seems to hit the news daily though that is quite a bit disconcerting is are the announcements by big corporations of job layoffs.
It seems one can go to almost any retail outlet and find help wanted signs, but we must be missing something.
McDonalds was the latest to lay off thousands of workers.
I thought these companies were just trimming back from over hiring during the pandemic, but there is something else.
So much for Congress’ concern over stock buybacks when employees are getting laid off.
Hopefully the promise of all the stimulus spending will drive hiring over the next several years with infrastructure work.
I hate to remind people but we have had decades of talk about shovel-ready jobs.
As investor though, one has to be pretty satisfied with the first quarter.
There was so much that could have derailed equities, but they continue to show strength. We have the S&P 500 above the 200 day moving average and the 50 day is on an uptrend.
Just enough good news to make me worry. But you have to appreciate how we have bounced off higher and higher lows for months.
Spring is in the air and one just has to enjoy and take it all in whether we understand or not.
