The meeting of the Federal Open Market Committee (FOMC) next week commands most of the attention this week. US service industry data being released may indicate some slowing of economic activity in that sector which the Fed believes to be one of the key contributors to intractable inflationary pressures. Data suggests the U.S. economy is certainly slowing down, but it does not tell us a severe recession is imminent. Having benefited during the pandemic, manufacturing sectors are weak while the services sectors are strong. The strong jobs market has helped the U.S. dollar strengthen and helped the equity market generate some broader participation amongst small and mid-cap stocks. The fixed income inverted yield curve(s) suggests a recession is pending. However, credit spreads for various asset classes are trading largely below or in line with longer term averages, which suggests investors are not concerned about an economic slowdown. On the wealth planning front, we discuss how insuring a home in a state prone to catastrophes can prove to be challenging.
Click Here to Read the June 5, 2023, Economic Commentary
Click Here to Read the June 5, 2023, Investment Commentary
Click Here to Read the June 5, 2023, Wealth Planning Commentary
