PUT IN WORK (9/18/2023)

The stock market took a bit of a spill last week, with things looking promising up until Friday when indices fell over a percent. Overall, the S&P 500 (SPY) ended down 1.7%, while the Nasdaq (QQQ) ended down 1.6%. Investors are still focused on inflation and rates, meaning this week's Fed meeting, which will take place Tuesday and Wednesday, will be the week's highlight. Despite this negative movement, we saw some good CPI data last week, which could be great for the market long term. Overall, the cost of items rose approximately 0.6% from July's report.

As discussed in previous issues, many investors believe that the Fed will leave rates as they are for the month, leaving things to simmer for a while longer. Naturally, this would be nice for investors, but it's not guaranteed. Furthermore, we've seen the effect the Fed, or more specifically, Powell, can have on the market through words alone, even if rates remain as they are for the month. If Powell's speech will be hawkish or dovish, we don't know, but it's safe to assume that whatever he says will be said to temper the market, thus keeping it from going too wild in either direction. So far, although September has been an overall down month for the market, these minor negative movements are what investors have come to expect for the month, with September generally being a relatively lackluster period for the stock market. Negative movement may not be ideal, but in this case, it's consistent, and as we all know, investors love consistency.

The market isn't much different this month than the previous months, with many investors' sentiments hinging on rate hikes and Fed language. Things could temporarily shift as we head into this fourth quarter and get a look at company earnings, but until then, the market will likely continue hovering in this range for another month or two.

(12-month percentage change of the Consumer Price Index, August 2023. Information provided by U.S. Bureau of Labor Statistics, chart provided by bls.gov.)

PORTFOLIO UPDATE

Our portfolio moved along with the market, with half of our stocks dipping lower and the other half remaining relatively flat. Essentially, there has been little-to-no notable movement across our portfolio. Things are looking good for the future, and we hope to see that positivity reflected in our stocks over the next several months. We plan to hold all currently owned stocks for the foreseeable future. As always, thank you for reading, and happy investing.