Stocks Soared This Past Week But Economic Pain Is Still Ahead
Published Friday, November 11, 2022 at: 7:55 PM EST
Buoyed by better-than-expected inflation data, the Standard & Poor’s 500 stock market index gained +5.5% on Thursday and added nearly 1% more on Friday.
While the 12-month trailing inflation rate, as measured by the Consumer Price Index (CPI), may indeed have peaked, the end of the post-Covid inflation crisis of 2022 is not over. The Federal Reserve plans is expected to raise rates in December and again in January, though the 75 basis-point increases of the last four months may drop back to 50.
The S&P 500 stock index closed Friday at 3,992.93 gaining +0.92% from Thursday and +5.9% from a week ago. The index is up +78.46% from the March 23, 2020 bear market low and -16.75% lower than its January 3rd all-time high. The S&P 500 fell into a bear market on June 13, 2022. No one can time the market reliably over the long run. However, it’s possible that stocks have already begun a new bull market, but more bad news is also expected to cause more Fed rate hikes, higher joblessness, housing starts to decline, and the cash cushion Americans have been sitting on following the pandemic stimulus payments to be spent down in 2023.
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This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation.
Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
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