Message From the CEO
Halfway through December already. I’ve procrastinated putting up our outside lights so long that now I’m thinking it probably makes sense to just try again next year.
Read on for some quick updates on the economy this month.
-Kevin
Should We Panic or Just Pass the Eggnog?
Ah, the holidays—a time for festive cheer, endless gift shopping, and, of course the word to crash it “Inflation”. The latest inflation data is in, and it’s a mixed bag, like one of those “holiday variety packs” where you secretly hope for more chocolate and fewer jelly beans.
Here’s the deal- Inflation ticked up 2.7% over the past year, nudging slightly above expectations. Core inflation (aka inflation without the noisy food and gas prices) is holding steady at 3.3%. Energy prices are giving us a bit of a break—thank you, falling gas prices, but… regular costs are still doing their best Grinch impression, climbing year-over-year.
So, should we be worried Well, the stock market doesn’t seem to think so. In fact, Wall Street’s been throwing a little party since the election. But let’s not ignore the bigger picture. The labor market is cooling down (fewer job openings, a little less wage pressure), and productivity growth has been steady—two signs that the economy might not need to hit the panic button just yet. Even the Fed seems cautiously optimistic as they gear up for their next meeting, weighing whether to keep rates steady or gift us with a cut.
The takeaway? Inflation is still a buzzkill, but it’s no longer crashing the party like it did in 2022-23. For now, despite inflation sticking above the Fed’s 2% target, markets are embracing the rate cut optimism.
Quick Housekeeping Note
Late next week I’ll be sending a financial checklist of things that need to happen before 12/31. Then we’ll be back in early January with a full-year 2024 market recap. Of course, if you need anything in the mean time just reach out.
Recent articles worth the look
Tug Of War– China has launched an antitrust probe into NVIDIA’s $7 billion Mellanox acquisition, investigating whether the company is honoring its 2020 agreement to treat Chinese firms equally which could escalate tensions as NVIDIA navigates its critical role in global tech and AI supply chains… Read more
Important Birthdays After 50-Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half” to make sure everyone knows they’re closer to the next age than the last. These important birthdays are good to know in terms of investing… Read More
NASDAQ Tops 20,000 for the First Time,Thanks to Alphabet’s Big Boost-The NASDAQ Composite rallied on Wednesday as November’s inflation data aligned with economists’ expectations, fueling optimism for another interest rate cut by the Federal Reserve at its upcoming December meeting… Read more
