News and Quarterly Updates

Dear 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 3.2% which was higher than expectations of 3.1%.  This is the second month in a row that numbers came in higher than expected.  In addition, 63% of the components are now climbing at a rate greater than 4% which has increased concerns about inflation coming back or the economy entering a period of stagflation. 
• PROMISED RATE DECREASES CONTINUE TO GET PUSHED OUT:  At the beginning of the year, the market was expecting the FED to drop interest rates 6-7 times beginning in January.  The markets are now only predicting 2-3 rate decreases to start towards the end of the year which has increased volatility as markets adjust to the future rate expectations.
• LATEST ECONOMIC INDICATORS:  As of February 29th, the recession indicators have improved with five indicators signaling Recession and seven signaling Caution.  The probability of a recession within the next 9-12 months moved slightly down from 61% to 58%.   

Below are the latest economic recession indicators as of February 29th. 

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.