Message From the CEO
When we moved from Boston to PA last year we bought a house with something I can’t believe I ever lived without: central air conditioning. Hope you’re all hiding from the heat these past few weeks.
In this mid-month update, we’ll be walking through some recent economic news and sharing a few articles I think you’ll find interesting.
As always, please reach out if you have anything you’d like to discuss.
-Kevin
Mid-July Market Trends and Economic Highlights
July 2024 saw a range of economic developments that significantly impacted the financial markets. Here’s a detailed overview:
Economic Indicators
The economy is showing some signs of softening, but it’s not necessarily a bad thing. The unemployment rate recently went up to 4.1%, which is the first time it’s been over 4% since November 2021. Manufacturing orders decreased again (which has a ripple effect through the economy). Consumer sentiment is still poor – which means the average consumer is reluctant to make major purchases because they’re worried about prices and think there could be a recession coming.
So why did I say it’s not all doom and gloom?
Monetary Policy and Inflation
The slight softening was the intended result of keeping interest rates high for so long. Basically the Fed wanted to make it more expensive to lend, which in turn slows down how fast businesses can expand, which ultimately brings down prices. That part has actually worked (so far), as prices came down for the first time. The hope is that things continue to slow down a bit just as the Fed prepares to lower their rates. We’re still on track for a rate cut in either September or November (the next two meetings), which is good news for anyone hoping to refinance their mortgage or a small business owner eyeing a loan.
Some Other Things You Should Read
Think Nvidia looks dear? American shares could get pricier still
What goes up must come down. But they might keep going up for a while instead….Read More
The US real-estate market is headed for a correction, strategist says
The stock market has been headed up, but is real estate headed down? Read More →
Market Says 90% Chance of Rate Cut in September
Don’t just take my word for it- the market has now priced in an almost guaranteed rate cut coming soon Read More →
We hoped you liked this first edition of our mid-month newsletter. Going forward you’ll get an edition like this in the middle of the month and our monthly recap of the market at the end of the month. We want to write about what you find helpful so don’t hesitate to let us know what’s on your mind.