Headline news created market volatility early last week before a powerful late-week rally erased early losses. This is why a knee-jerk reaction to headlines is not a sound investment strategy.
The Dow Jones Industrial Average was flat (-0.06%), while the Standard & Poor’s 500 edged higher by 0.82%. The Nasdaq Composite index gained 1.08% for the week. 1,2,3
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The build-up to Russia’s eventual invasion of Ukraine triggered elevated market volatility, resulting in broad-based selling as the holiday-shortened week of trading began.4
Setting aside the more important aspects of the human cost and damage to world order, Russia’s invasion of Ukraine introduced an acute layer of uncertainty into many layers of the financial markets. The immediate repercussion was the impact on global economic recovery due to rising energy prices, which reduce consumers’ discretionary spending and saddle businesses with higher costs. Given uncertainty the markets (buyers and sellers) do not know which way to go thus creating more volatility in the market.
The inflationary impact of higher energy and other prices also complicates the Fed’s strategy to guide interest rates. This puts into question the probability of a 50-basis point interest rate hike at the Fed’s March 2022 meeting that seemed likely, just a week ago.
This Week: Key Economic Data
Tuesday: ISM (Institute for Supply Management) Manufacturing Index.
Wednesday: ADP (Automated Data Processing) Employment Report.
Thursday: Factory Orders. Jobless Claims. ISM (Institute for Supply Management) Services Index.
Friday: Employment Situation.
Source: Econoday, February 25, 2022
This Week: Companies Reporting Earnings
Monday: Lucid Group, Inc. (LCID), Zoom Video Communications, Inc. (ZM).
Tuesday: Salesforce.com, Inc. (CRM), Target Corporation (TGT), Ross Stores, Inc. (ROST).
Wednesday: Dollar Tree, Inc. (DLTR), Snowflake, Inc. (SNOW).
Thursday: Broadcom, Inc. (AVGO), Costco Wholesale Corporation (COST), Best Buy Co., Inc. (BBY), Marvell Technology, Inc. (MRVL), The Kroger Company (KR).
Source: Zacks, February 25, 2022
“Who are wise in love, love most, say least.“
– Alfred, Lord Tennyson
Have You Created Your IRS Online Account?
The IRS makes it easy to create an online account where you can view all kinds of account information, such as:
You can even make online payments and get a digital copy of the most recent transcript of your tax return.
* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov6
A “Berry” Important Superfood
Not only are blueberries delicious, but they are also a powerful superfood that has many potential health benefits. They are low in calories, can be added to countless dishes, and are the perfect easy snack. Here are some benefits of blueberries, according to Healthline:
Tip adapted from Healthline7
You have a can of soda in your hand and someone tells you to drink the bottom half of it first. How can you do that?
Last week’s riddle: You go in through one hole, you come out through three holes. Once you're inside you're ready to go outside, but once you're outside you're still inside. What is it? Answer: A Sweater.
Amalfi Coast, Positano, Italy.
Footnotes and Sources
2. The Wall Street Journal, February 25, 2022
3. The Wall Street Journal, February 25, 2022
4. The Wall Street Journal, February 22, 2022
5. The Wall Street Journal, February 24, 2022
6. IRS.gov, July 26, 2021
7. Healthline.com, September 30, 2021
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
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Weekly Market Insights: 5 Smart Investment Strategies
March 02, 2022|