Welcome to our April 2023 Market Update Video!
We have a lot to talk about, so let’s get right into it.
The stock market rose 3-1/2% in the month of March.1 Does this come as a surprise after what we saw with the banking news? As a refresher, Silicon Valley Bank, Credit Suisse and other banks saw a run on deposits and failures causing panic in markets.2 Central Banks stepped in with assurances and cash to effectively rescue these banks and at least pause the problem.3
So going back to my little question, does this come as a surprise that markets were up in March…my answer is a resounding Yes!
The Federal Reserve met in March, and while they hiked rates ¼-point they indicated increases are near an end.4 The Fed has also added about $400 billion to its balance sheet through the bank crisis, to effectively bailout or stimulate the banking sector.5 Here’s my translation: I believe the central bank just pivoted from tightening to loosening financial conditions. I feel this may bode well for stocks.
If you have followed my thoughts over the years, it probably comes as no surprise when I say we’re in a debt bubble. I believe constant stimulus or expanding the money supply is the cause. So how do we act during an environment like this to not only protect ourselves but maybe even profit?
I believe protection may come easy simply by owning things outside of the perceived bubble. Hard assets such as precious metals may apply here, in my opinion. How may an investor profit? I feel investors may simply ride the wave: If the Fed really did pivot, then stocks may benefit.
Ok, let’s take a deep breath! How has our investing changed? It really hasn’t. I believe in stocks, especially those that pay us to hold them and maintain a hedge utilizing precious metals. For those of us that need safety and cash, investors may earn more interest as well.
It’s not always easy to sum up so much in 2-3 minutes, so please don’t hesitate to reach out with any questions or feedback.
Thank you so much for your trust in me and I look forward to talking to you soon.
Tim Truebenbach, CFP®
Senior Vice President – Financial Advisor
Disclaimers and Sources
1 Source: Thomson ONE Reuters, S&P 500, 4/5/2023
2 Source: NY Times, 10 Days That Have Roiled Markets, 3/20/2023
3 Source: Reuters, World Market set for relief after Credit Suisse buyout, central banks action, 3/19/2023
4 Source: CNBC, Fed Hikes rates by a quarter point, indicates increases near an end, 3/22/2023
5 Source: Schiff Gold, Fed adds another $94 Billion to its Balance Sheet, 3/27/2023
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