Market Drama

Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA

November 21st, 2022 

Watch Time: 3 minutes

Welcome back to Zoe’s weekly market drama series.

  • The U.S. Stock Market drifted lower after the sugar high rush dive down from last week’s better-than-expected October inflation number. 
  • On the bond market, we saw the spread between the two-year treasury yield and the ten-year treasury yield continues to plunge deeper into negative territory. In fact, it’s now at the lowest level since February 1982.

    • An inverted yield curve (which is when a two-year or a one-year treasury bond is higher than a ten-year treasury bond) has a pretty good track record of telling us that there’s a U.S. recession coming.

  • We saw the U.S. supplier price increases slow down for October. It’s called the PPI (Producer Price Index). The market was expecting a slightly higher number, and that’s two months in a row in which we see that PPI number come in, so that’s a positive signal of inflation coming down.
  • When it comes to economic data on the housing side, we had worse-than-expected housing starts for October.
    • 4% drop month over month.

    • Higher interest rates are really starting to affect the housing market.

What to look out for this week? 

  • Regarding economic data, we should highlight U.S. Manufacturing and service PMI for November. 
  • The upcoming week is pretty light because of Thanksgiving. 

– Andres

Disclosure: This material provided by Zoe Financial is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Zoe Financial is not an accounting firm- clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written.  Economies and markets fluctuate.  Actual economic or market events may turn out differently than anticipated.  Facts presented have been obtained from sources believed to be reliable.  Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. 

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