March 2023 Market Intelligence Report

In February, markets gave back some of their January gains as consensus expectations for interest rates

moved higher. In other words, the US Federal Reserve may have more work to do than previously thought

in order to tame inflation. This is generally bad news for borrowers (higher interest cost) and good news

for savers (more interest received). We do not expect a nasty recession and the data continues to support

that. This month, we highlight services and manufacturing purchasing managers index (PMI) reports,

which showed services in continued expansionary territory and manufacturing attempting to bottom. So

far, the great Paul Samuelson quip lives on: “The stock market has predicted nine of the last five

recessions.”

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