This monthly communication, “Financial Bullet Points,” will quickly and easily cover the main financial issues we see affecting the markets without being bogged down with a lot of details.
Written by Bob Barber, Prepared on Jan 27th, 2024
The Bullet Points for February are:
- Inflation. The core personal consumption expenditures price index for December, an influential gauge for the Federal Reserve, increased 0.2% on the month and was up 2.9% on a yearly basis. Including volatile food and energy costs, headline inflation rose 0.2% for the month and held steady at 2.6% annually.
- Interest Rates. As I expected, 10-year Treasury yields stabilized in the 4% range in January after a sharp decline from touching 5% to a little below 4% in the 4th quarter.
- Consumer Spending. The rate of Consumer Spending increased 0.7%, more robust than the 0.5% estimate, but with consumer debt at all-time highs, this may not continue.
- Real Estate. Home inventories continue to rise, with prices falling in some markets like Austin as much as 20% from the peak a few years ago.
- Car Sales. Electric vehicle sales are plummeting, with EV inventories approaching six months in some places.
- GDP. A measure of all the goods and services produced, GDP increased at a 3.3% annualized rate in the fourth quarter of 2023. Wall Street expected a 2% gain.
- The Markets. January markets unexpectedly narrowed again to just a handful of tech companies. Don’t be fooled by the cap-weighted S&P 500 reported in the news being lifted by these few stocks; it is not indicative of the overall markets. Instead, look at an equally weighted index more representative of all the sectors. An equally weighted example is the ETF ticker symbol RSP.
- Continuing Education. This month’s programs for Christian Financial Perspectives are:
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- 14 Characteristics of Financially Successful Christians (Feb 13th)
- Using 1 Timothy 3 to Find a Financial Advisor (Feb 27th)
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If you would like further explanation of any of the bullet points mentioned, please call or text (830) 609-6986 during business hours or email us by clicking here.
Bob Barber, Founder & Owner
Christian Financial Advisors®