PFA Updates

May 26, 2023

Happy Memorial Day weekend friends!

Our Investment Committee recently met, as we do every month. In the last six weeks, since our early April newsletter, the markets have reminded us of the 1993 movie Groundhog Day...every day feels about the same.

The market has traded in a narrow band, up and down and up and down, finishing slightly up in the last week.[1] Negative news abounds in the headlines. Everyone is still guessing if the Fed will pause or increase interest rates at its next meeting in June. Our government is still battling over the debt ceiling with a critical default date coming very soon. Yet, inflation is decreasing, supply chain issues have eased, unemployment is at 3.4%, US companies continue to be profitable and the American consumer has not slowed spending money.[2] In fact, Memorial Day weekend travel is projected to be at a record level.[3]  It all feels about the same as last month.  The markets and the headlines are a little uncomfortable, but they are not getting in the way of our lifestyle.

So, our message has not changed. We are hopeful for an early bi-partisan solution to the debt ceiling debate and for the Federal Reserve to pause interest rate increases at their June 14th meeting. If we get positive resolutions to these two issues, we might then be on our way to a better second half of the year. We remain patient and hopeful. Our overall investment strategies have not changed, but we remain ready to make prudent changes as economic data dictates. We will keep you informed. If you have any questions about your investment accounts or our strategies, feel free to contact us.

Happy Memorial Day,

PFA Investment Committee

[1] bigcharts.com

[2] crains.com

[3] yahoo.com