May 02, 2024

The Market Reacts to Fed Day

28 minutes

As earnings and economic growth deliver above expectations, the market is digesting new information from Jerome Powell and the Fed that rate cuts aren’t coming soon. We’ll look back at the last 30 years of returns and ahead to the next 10 years of prices, discuss offshoring jobs, and give bond market and inflation updates.

Key Takeaways

[00:19] - Fed Day breakdown

[05:07] - April brought a much-needed market reset

[09:16] - Looking back at the last 30 years' returns + what to expect over the next 10

[16:50] - The efficiency of offshoring jobs

[24:51] - Bond market + inflation updates

Links

YTD we see 10 of 11 sectors are higher, with cyclical areas like energy, industrials and financials leading the way

So far, in Q1, the #EPS surprises have been the highest since 2021 with the dispersion of results elevated

Did you know the S&P 500 was up 9 of the past 10 years in May?

30 Years of financial market returns

Prices 10 years from now

Faber: I'm so bullish on US stocks I think you should invest most of your money here

The lagging components of the inflation basket

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Doug Stokes

Greg Stokes

Stokes Family Office

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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate, qualified professional prior to making a final decision.

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