• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Contact Us Today!
800.317.9119

Investor Resources Inc.

Portfolio Management, Wealth Management, Investment Analysis

Client Portal Login
  • Home
  • Welcome to IRI
  • Investment Process
  • Research & Strategies
    • About the RPM System
    • 401K Defense
    • Theory or Reality
    • Fiduciary
    • Concentration
    • Managing the Unexpected
    • Disciplined Flexibility
    • Modern or Aged?
    • Change or Hope?
    • Not Modern? Then What?
    • Math – Not Magic!
  • Radio Shows
  • Video
  • Investor Blog
  • Contact Us
Week In Review – November 16 2022

Week In Review – November 16 2022

November 16, 2022 by Perry Sikes

Inflation Came in a Little Light in October, Up 0.4% Instead of 0.6%… The annual inflation rate eased from 8.2% to 7.7%, less than the expected 7.9%. This was the lowest inflation reading since January.

What it means— This is normally where we would be telling people not to get too excited and to use any major liftoffs to day trade, but that ship sailed right after the CPI numbers hit the tape. The Nasdaq soared more than 7%, as growth names had a monster day and news outlets immediately hopped on the “Will the Fed stop tightening?” train. Here’s a guess. They won’t. Or at least, they won’t yet. We’ve not been a fan of this central bank move, because  they’re fighting inflation they didn’t create and it would have been much smarter for them to stop buying bonds first instead of doing that while raising rates. But now that we’re here, the central bankers won’t risk looking like they stopped the fight against inflation too soon. They will spend the next month talking about how they’ll keep up the good fight. Look for a 50-basis-point hike in December, and then possibly another 25-basis-point hike early next year. It’s all about the terminal rate. If they stop at 4.5% or lower, then expect the Fed to start cutting rates before the end of next year.

The Republicans Gained Ground in the House, While the Senate Is Still Up for Grabs… Immediately before the election, Democrats were bracing to get shellacked. It didn’t happen. They lost, but by much less than the party in power usually gives up.

What it means— It looks like the Republicans will narrowly control the House. We know that at least the Georgia Senate race will go to runoff, but we will have to see how several other Senate races turn out to see if the Georgia race decides control. If the Democrats hang on to the Senate, then the president could still confirm judges.

High-Tech Companies, Including Twitter, Start Firing Workers… Twitter fired nearly half of its staff, around 3,700, while Meta let go 11,000 of its people.

What it means— Lyft, Stripe, Coinbase, Shopify, and Redfin are just some of the high-tech darlings of yesterday that have been announcing layoffs over the last couple of weeks. While such news might make headlines, it likely won’t make much of a difference in the economy. Initial jobless claims remain rather low, at 225,000 last week, and many of the workers have skills that will allow them to work remotely. No one likes to lose a job, and we should expect unemployment to move higher as the Fed cools off the economy, but this isn’t the same as a manufacturing town in Ohio in the 1980s losing its main employers.

For the Last Time, Stop Licking the Toad… That’s the warning from the National Park Service concerning the Sonoran Desert toad. The seven-inch creature secretes toxins, some of which can send you on a psychedelic “trip,” while others can cause heart arrhythmia, tissue damage, or a host of other ills. To top it off, the toads are getting so popular that they are at risk of being over collected, causing population collapse. So, for the last time, stop licking the toads—and, whatever you do, don’t put one in your mouth.

 

Data supplied by HS Dent Research

“When the facts change, I change my mind.

What do you do?” ~ John Maynard Keynes

Our plan is “the plan will change.”

What is your plan?

 

Relative strength measures the price performance of a stock against a market average, a selected universe of stocks or a single alternative holding. Relative strength improves if it rises faster in an uptrend, or falls less in a downtrend. It is easily applied to individual positions in your portfolio and to sectors and asset classes.

 

A copy of our form ADV Part 2 is available online.

 

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Investor Resources, Inc. (“Investor Resources”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Investor Resources.  Please remember to contact Investor Resources, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Investor Resources shall continue to rely on the accuracy of information that you have provided.   Investor Resources is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of Investor Resources’ current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at https://www.investorresourcesinc.com/.  Clients Please Note: Advise us if you have not been receiving account statements (at least quarterly) from Charles Schwab & Co.™

 

Filed Under: Economy, Inflation, Politics, Unemployment Tagged With: Inflation, politics, unemployment

Investor Resources Radio

The Investor Resources Radio Show airs on KTTH AM 770 every Saturday at 10:00 AM. Listen to Don ...

Read More

Seminars

Tired of being told that a diversified portfolio will keep your investments safe, then watching them lose ...

Read More

Webinar Registration

April Market Update Saturday, April 1st at 8:30am. Click here to register now. Change is the ...

Read More

Meet The IRI Team

We have assembled a skilled and experienced team of experts that will help you navigate any financial situation. ...

Read More

Copyright © Investor Resources Inc. All rights reserved. Investor Resources, Inc. is a registered investment adviser in the States of Washington, Arizona and Texas. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.

Compliance  |  Important Customer Disclosure  |  ADV Part 1 and 2

Terms of Service  |  Sitemap

Bellevue Office: 601 - 108th Ave. NE, Suite 1900, Bellevue, WA 98004  Phone: 425.673.5000

Port Orchard Office: 1922 Pottery Ave., Suite 110·Port Orchard, WA 98366  Phone: 360.895.9119

Login

Lost your password?

Reset Password

Log in