News and Quarterly Updates

Hello Valued Client,

Brief Market Update: Please take a few minutes to read some brief comments on the markets and the
current economic recession indicators.

• CPI CAME IN ABOVE EXPECTATIONS: The latest CPI number came in at 3.1% which was higher than
  expectations of 2.9%. Inflation has a tendency to drop and then rise again after a sustained
  inflationary period like we had over the past few years. The FED has signaled that monetary policy
  will need to remain restrictive for longer than expected to keep inflation from coming back.
• THE FED IS BACKING OFF PROMISED RATE DECREASES: At the beginning of the year, the market
  was expecting the FED to drop interest rates 6-7 times beginning in January. These expectations
  have now dropped to only 3 rate decreases that don’t begin until the middle of the year. This is a
  major change in expectations which should impact markets over the next few months.
• LATEST ECONOMIC INDICATORS: As of January 31st, the recession indicators have improved
  slightly with six indicators signaling Recession and six signaling Caution. While the recession
  indicators have improved, the probability of a recession within the next 6-9 months moved higher
  from 52% to 61%.

Below are the latest economic recession indicators as of January 31st .

All the best,

Matt Deaton, Managing Partner

Acute Wealth Advisors

4856 E. Baseline Rd., Suite 104 | Mesa, AZ 85206

P: (480) 620-6907 | F: (800) 537-4185

Investment advisory services offered through Acute Investment Advisory, a Registered Investment Advisor. Insurance and annuities offered through Acute Wealth Advisors, LLC.