Market Insight October 9, 2023

Our weekly market insight provides timely and accurate information on the financial landscape. We deliver tailored insights on different aspects of the market, economic indicators, and our investment strategy.

Too Strong for the Fed

What is it?

Jobs data came out last week that may be too strong for what the Fed had initially planned. 

“A blowout U.S. jobs report on Friday sparked a delayed rally on Wall Street as the data revealed a strong economy with moderating inflation that helped set aside fears of higher interest rates that caused bond yields to soar. September’s job numbers were almost double the 170,000 forecast of economists polled by Reuters and shocked a market trying to understand how the U.S. Federal Reserve will address a strong economy and its mission to lower rates to its 2% target.”*

Why does it matter?

While that is good news for the prior month it may not be ideal for the months to come. Since employment is strong the Fed may keep interest rates high or even push them higher to tame inflation. If so, stocks will have to overcome elevated interest rates which may lower stock prices. 

Because of what’s going on, we are slightly reducing our exposure to the stock market. However, the main portions of our portfolios are not changing much as of now. 

Other articles we found interesting this week:

Oil prices surge as surprise attack on Israel sparks fears of broader conflict

Dallas Fed’s Logan warns of higher rates if the economy remains strong

Bond vigilantes circle battered US Treasury market

Current 401(k) portfolio

Our last 401(k) portfolio reallocation: 8/14/2023. 

Want more information?

The weekly market insight provides a window into the process we use in our investment management process. At Breakaway, we believe markets are always changing and require a nimble yet data-oriented approach. 

Our process attempts to identify trends and momentum in the financial markets. With that information, we align our clients’ portfolio accordingly in the hope to help our clients accomplish their life goals while attempting to lower the risk of a large drop in their portfolio.

Click here for more details about our investment management 

Sources:

*Herbert Lash. “Stocks rally, bond yields soar on blowout US jobs data”. Reuters. 10/6/2023. https://www.reuters.com/markets/global-markets-wrapup-1pix-2023-10-06/

IMPORTANT DISCLOSURES: 

Educational use Only. The market update published by Breakaway Financial Group LLC (“Breakaway”) is intended to be educational in nature and is not intended to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Accordingly, it should not be construed by any consumer and/or prospective client as solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation. 

Advertising and Marketing. Communications such as this are not impartial and are provided in connection with advertising and marketing. This material is not suggesting a specific course of action or any action at all. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, insurance, legal or tax professional that takes into account all of the particular facts and circumstances of an investor’s own situation. No person associated with Breakaway is a licensed attorney or tax professional and the information contained herein should not be considered tax or legal advice. 

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Important Information regarding Registration Breakaway Financial Group, LLC and/or Patrick Traverse offer investment advisory and financial planning services through Belpointe Asset Management, LLC, (“Belpointe”)500 Damonte Ranch, Parkway Building 700, Unit 700, Reno, NV 89521, an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe offers, or that its personnel possess a particular level of skill, expertise or training. It is important to read disclosures pertaining to Belpointe Asset Management at this link https://belpointeasset.com/disclosure/.  Additional information about Belpointe and Patrick Traverse is available on the SEC’s website at www.adviserinfo.sec.gov.

Craig Stahlecker

Craig Stahlecker

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IMPORTANT DISCLOSURES:
The information provided is intended to be educational in nature and is not intended to be a recommendation for any specific business or tax strategy, plan feature or other purposes. Accordingly, it should not be construed by any consumer and/or prospective client as solicitation of services.

Communications such as this are not impartial and are provided in connection with advertising and marketing. This material is not suggesting a specific course of action or any action at all. Prior to making any business or tax planning decisions, an individual should seek individualized advice from a personal financial, tax, legal, or business consultant professional that takes into account all of the particular facts and circumstances of an individual’s own situation. No person associated with Breakaway Financial Group LLC is a licensed attorney, and the information contained herein should not be considered legal advice.