Germany and China start the week moving in opposite directions. China appears to indicate a notable increase in travel, tourism and consumer services associated with the Lunar New Year holiday, bolstering a variety of forecasts for a rebound in economic growth. In contrast, Germany seems to be slipping into recession, with the announcement of a 0.2% drop in fourth quarter GDP, mostly due to a fall in consumer spending. Also, one day after the Federal Reserve meeting this week, which is widely expected to lead to at least a 25bps increase in the Fed Funds rate, the European Central Bank is expected to raise the rate 50 bps and to signal another 50 bps increase in March. Falling inflation and relatively resilient economic data have boosted market hopes of a “soft-ish” landing for the US economy. We believe the tide is turning in favor of equities outside the US, driven by an improving economic outlook, especially in the Euro area, and US dollar weakness. On the wealth planning front, we discuss the Getty family feud between the descendants of Paul Getty, oil tycoon and richest person in America in 1957, and their financial advisor, Marlena Sonn.
Click Here to Read the January 30, 2023, Economic Commentary
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