February Market Update Event - Recap

February Market Update Event - Recap

February 26, 2024

We want to thank everyone who attended last week's seminar. We hope you enjoyed the presentation and took something valuable from it. If you were unable to attend, we wanted to share three main takeaways.

GDP to Remain Healthy: Gross Domestic Product or GDP is the barometer of how well the economy is doing. Over the last few years, we have seen GDP remain stronger than anticipated. As we start to see the effects of rate hikes on the economy, GDP is expected to slow to a more normalized pace. The largest part of GDP is consumer spending. As credit delinquencies rise, overall, the consumer balance sheet looks to be in better shape than expected.

Inflation Coming Down: We have seen a drop in inflation since the Federal Reserve started their rate hiking cycle more than 18 months ago. Inflation numbers for December were better than expected with a quick turnaround in higher-than-expected inflation in January. As inflation gets lower, the Federal Reserve should start lowering interest rates. When this happens, typically, spending on homes, cars, and spending by companies increases which helps the overall economy.

Layoff Trends: At this point we are still in a historically low unemployment rate environment. As we see more layoffs hit the headlines, we must keep in mind that even with layoffs, we could potentially see unemployment end under the 5% mark. This means most of the work force is working which leads to upkeep in consumer spending which helps GDP.

Again, we want to thank all who attended, and we look forward to seeing you along with new faces at our next event!