Welcome to our April 2024 Viewpoints, a monthly bulletin from PDS Planning to our valued clients and friends. Our goal with each issue of Viewpoints is to provide you with a wide variety of perspectives on life and wealth. Feel free to share with others.
By Drew Potosky, CFP®,
Posted: 4/19/2024
Inflation
The services sector of inflation has been a primary reason for unexpectedly higher readings the last couple months. Services account for 57% of the consumer price index [CPI] and are up 5.27%. This compared to the total CPI inflation reading of 3.50%. With the chance of energy creeping higher in the next 6-12 months and the sticky nature of service pricing, it’s possible the fall of inflation takes a bit longer than initially expected.
Q1 Market Summary
In the April Market Commentary, I mentioned the end of Q1 and posted a simple visual of returns. The table below goes beyond Q1 2024 and looks at the last 1-, 3-, 5-, and 10-year annual performance of a handful of primary market benchmarks.
Leading Indicators have Leveled Off
The leading economic indicators have been falling since 2021. A precipitous fall such as the one shown current has usually led into a recession – the darker red bars. As of late, the economy has shown more sign of strength as more of the business cycles turn over into year-over-year growth, evidenced by a flattening line. This doesn’t mean we’re out of the woods, but it’s a welcome sign after years of weakness.
Cleveland Guardians
The Guardians are off to a great start in 2024 and sit atop the central division. They’re tied with the Yankees with the second best record in baseball. The team started 9-2 on the road. The last time they did that? 1948. When they won it all. Get your champagne ready.
IMPORTANT DISCLOSURE INFORMATION: Please remember that past performance is no guarantee 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 PDS Planning, Inc. [“PDS”]), or any non-investment related content, made reference to directly or indirectly in this blog 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 blog serves as the receipt of, or as a substitute for, personalized investment advice from PDS. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. PDS is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the PDS’ current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.pdsplanning.com. Please Note: PDS does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to PDS’ web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a PDS client, please contact PDS, 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. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
