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| For more market updates, subscribe to our YouTube channel! Gradient Investments Weekly Talking Points 01/21/2022 All data is for the week ended January 21, 2022. Stocks Equities were down sharply across the major global indices. The primary concerns were around interest rate increases to combat the surge in inflation in addition to a military buildup in Ukraine by Russian and NATO forces. The Russell 2000 declined 8.07%, NASDAQ dropped 7.55% and the S&P 500 was down 5.67%. Note that year to date the NASDAQ has dropped nearly 12%; any index that declines 10% or more from its recent high is considered in correction territory. Overseas, developed markets index (MSCI EAFE) declined 2.08% and that of the emerging markets (MSCI EM) declined 1.04%. 1 Fixed Income Rates declined as values rose last week with the benchmark 10-year treasuries ending the week at 1.75%, down 3 basis points for the week and down 12 basis points since Tuesday.2 The yield curve flattened in anticipation of rising interest rates from the Federal Reserve in the coming weeks. Commodities The price of gold (GLDM), a Precious Metals strategy and Endowment Series holding, moved 0.80% higher last week on continued concerns about inflation and stock market volatility. Over the past month and past three months gold has risen 2.43% and 3.23%, respectively.3 Economic Data The Philadelphia Manufacturing Business Outlook survey rose strongly, from 15.4 in December to 23.2 in January. Prices, shipments, number of employees and average workweeks were the key drivers of the index’s strength.4 Company News5 Netflix (NFLX), a Core Select and G33 holding, reported results that beat expectations on revenue and earnings, but management gave poor guidance on subscription growth for their service last week, sending the shares down 24.39%. 6 Procter & Gamble (PG), a G50 and Contrarian Choice holding, rose 2.31% last week on a strong sales and earnings report that beat consensus expectations. Management also raised guidance for organic sales which includes stronger pricing.7 Did you know… Iceland has the largest banana plantation in Europe. Farmers there use geothermal energy to heat greenhouses, allowing for the production of tropical fruits including bananas. Mariann Montagne, CFA Portfolio Manager Sources: 1 Franklin Templeton “What Happened Last Week” 1-24-22 2 Treasury.gov 3 Morningstar 4 Federal Reserve Bank of Philadelphia 1-20-22 5 All weekly changes in company stock prices: Yahoo Finance 6 Netflix press release 1-21-22 7 The Procter & Gamble Co. press release 1-19-22 Advisory services are offered through American Retirement Advisors, Inc., a Registered Investment Advisor in the State of Michigan. Insurance products and services are offered through American Retirement Solutions an affiliated company. American Retirement Advisors, Inc. and American Retirement Solutions are not affiliated with or endorsed by the Social Security Administration or any government agency. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Moreover, this material has been derived from sources believed to be reliable, but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. For the latest industry updates, follow us! |