Message From the CEO
Happy St Patrick’s Day to all who celebrate. May you all enjoy a cold beer and plenty of corned beef (yuck).
Let’s talk about the recent market unpleasantness.
-Kevin
Good, Bad and Ugly
Let’s unpack what’s been happening with the markets, the broader economy, and that all-important Consumer Price Index (CPI). Spoiler alert: it’s not all doom and gloom, even if the headlines might tempt you to think otherwise.
Bad: President Trump’s new tariffs on imports from Canada, Mexico, and China took effect on March 4, sparking a trade war that’s rattled investors. The S&P 500 tumbled -1.8%, and the Nasdaq-100 dropped -2.6% that day. They then proceeded to continue falling are down about 5% this month. More importantly, they’ve now crossed the unofficial but symbolic line of being down 10% since a recent high, which puts them in “correction” territory.
Ok: The jobs numbers were meager, but still positive. So that’s not a giant warning sign (yet).
Kinda good actually: Meanwhile, the monthly inflation report came in even below what economists had expected. It’s possible that the Fed’s moves actually helped and are now being felt when you go to the store. (The price of eggs, which has somehow become everyone’s new favorite metric, is down 50% over the past two weeks.)
So, as we sit here mid-month, the markets and economy area mixed bag. It’s not all rosy, but it’s not a train wreck either. We’ll see how the tariffs keep affecting the market and where we stand in about a month.
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