With Thanksgiving approaching, it’s as good a time as any to be thinking about how to show gratitude to the significant people in your life and for what you have managed to achieve.
But what is gratitude? The word comes from the Latin gratia, from which we also get the words “gratis” and “grace.” There is, then, a close relationship between gratitude and grace, i.e., what we did not earn but were freely given.
Whether it’s a lucky break, the family we were born into, the friends we made, or just happening to be in the right place at the right time for an opportunity that changed our life for the better, we have all benefited from what is outside of our control, for which one can’t help but be grateful. However, “grace” also means courteous goodwill and forgiveness shown to others, both of which flow out of feelings of gratitude.
We hope you take time this weekend to be grateful for whom and what you have to be thankful, finding in gratitude your own feelings of grace under whatever pressures may come.
Enjoy these articles. Sending you sincere wishes for a truly memorable Thanksgiving.
Consumer Price Index Prints at 3.2%, Missing Expectation of 0.1%… Core inflation, excluding food and energy, dropped to 4.0%.
What it means— There was dancing on Wall Street, as investors took the easing inflation numbers to mean that the Fed is done raising rates. The odds of a rate hike in December fell from 15% to 5%. If that’s true, then it’s just a matter of time before the central bankers start cutting rates, which would lead to falling long-bond yields and rising stock prices. Both stock and bond markets zoomed higher after the release, but it seems a bit overdone.
Reporting overall inflation at a mere 0.1% lower than expected, mostly driven by a 5.3% drop in gasoline prices, is thin gruel. Winter hasn’t arrived, the Ukraine war (remember that one?) is still raging, and now we have the war in Gaza and NATO members calling for more sanctions on Russia. If we’re counting on falling energy prices to lead inflation lower, we could be in for a shock if anything goes wrong.
Retail Sales Drop 0.1% in October, First Decline in Seven Months… The decline was less than the 0.2% drop expected.
What it means— Retail sales aren’t inflation adjusted, so declines are bigger than they appear. In an odd way, the report gave investors hope that the holiday season would be a bust, putting more pressure on the Fed to cut rates and stop selling bonds. We’ve been bearish on holiday sales for a while but don’t count on it to motivate the Fed either way. Autos, which are 20% of retail sales, posted a 1% decline. Without that, retail sales would have been up a bit. Cheaper gas also held retail sales down.
It appears that consumer spending is tracking average earnings growth, which is rising at a slower rate than inflation. As long as people are employed, they will spend, which is not what the Fed wants.
Housing Starts Up 1.9% in October to 1.37 Million Annualized Rate… Housing starts were modestly above the expected rate of 1.35 million.
What it means— Builders are still making money because existing inventory remains in a stalemate. That said, borrowers have received some good news over the last few weeks, as 30-year mortgage rates dropped from 8% to 7.44%. It’s a long way from 6%, but at least it’s going in the right direction. If the holiday retail season looks like it will be disappointing and the Fed turns dovish at its December meeting, long rates might drop and give the housing market a boost. That drop in long rates will probably not be big or last for long, so if you need a mortgage, get one while you can. If we’re wrong, you can always refinance in a year or two.
Woman Stabs Man After He Asks for Television Remote… In case you’re wondering, twice is the number of times you can ask Michelle Robinson for the remote. After that, you’re at risk. According to the criminal complaint, Robinson wanted to listen to music while he wanted to watch football. Robinson kept the remote in her purse. When the man asked Robinson for the remote a third time, she pulled out a knife and stabbed him repeatedly in the hand. When police arrived, Robinson first said the man stabbed himself, and then said he had assaulted her. Later, Robinson blurted out that she had stabbed him.
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.
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.™