US inflation and growth metrics will both be in the news this week, starting with the Consumer Price Index and Producer Price Index numbers for January and continuing with retail sales, industrial production and housing numbers, all for January as well. The economy is mid-way through the first quarter, with the early evidence supporting an estimated growth rate of 2.2%; whether the economy can hew to this path in the coming weeks and months is the question on every investor’s mind. The S&P 500 is off to a good start in 2023—up more than 7 percent as of Feb. 13. Investors are anticipating the following announcement “Ladies and gentlemen, the Fed welcomes you to the next bull market. The local time is February 2023.” After pricing in perfection only a week prior, the market faced a reality check last week in the form of a higher terminal rate and falling earnings. The cost of capital is rising again, albeit modestly, and the E in the forward P/E is coming down. Meanwhile, earnings are losing altitude. On the wealth planning front, we discuss de-risking the potential financial impact of cognitive decline. It’s uncomfortable to think about, but as we age, some of us will lose the ability to make prudent decisions.
Click Here to Read the February 13, 2023, Economic Commentary
Click Here to Read the February 13, 2023, Investment Commentary
Click Here to Read the February 13, 2023, Wealth Planning Commentary
