“Opportunity comes to the prepared mind.”
-Charlie Munger
Here’s what you need to know this week:
· Stocks rise on renewed economic optimism
· Tariffs may be more targeted than previously thought
Rebound
Stocks rose for a second straight week on optimistic messaging from the Federal Reserve and continuing economic resilience. The Federal Open Market Committee (FOMC) held interest rates steady as most analysts expected, and Fed Chairman Jerome Powell successfully calmed investor’s anxieties by reiterating the Fed’s flexible stance regarding future rate cuts[1]. Powell also noted that the US economy is still in good shape despite uncertainty regarding potential tariffs.
One key economic indicator is job losses, measured by first-time claims for unemployment benefits. Sharp rises in first-time claims have historically been a strong predictor of oncoming recessions; so far, unemployment claims have been holding relatively steady:
Powell’s comments breathed life into an otherwise anemic market, but stocks will likely stay volatile until we have more clarity on upcoming tariffs. Speaking of:
Latest on Tariffs
Stocks posted strong gains on Monday due to news that President Trump’s upcoming tariffs may be more “targeted” than previously expected. White House aides told Bloomberg and the Wall Street Journal that when Trump announces his suite of tariffs next Wednesday, April 2nd, the tariffs will be focused more on specific industries from specific countries as opposed to broader blanket tariffs[2].
Like I’ve said in the past, markets tend to hate uncertainty more than anything else. Stocks have proven not to be a fan of tariffs in general, but companies and investors can figure out how to operate once they know the rules of the game. We’ll still need to wait until next Wednesday for full clarity on the tariff plan, but it seems the general contours of the plan are beginning to take shape.
What Else
· The US military carried out airstrikes against Houthi rebels in Yemen, killing at least two
· Two new wildfires have sprung up in North Carolina, forcing mass evacuations
· Egypt has proposed a new ceasefire between Israel and Hamas; negotiations are ongoing
· The price of gold notched yet another all-time high of $3,043/oz
· The Sweet 16 round of the March Madness college basketball tournament tips off tomorrow
What We’re Reading
A partial solar eclipse will cross pass over Europe and eastern portions of the US this Saturday, March 29th. While not as dramatic as last year’s total eclipse, this is still expected to be a relatively powerful eclipse. Click below to read viewing tips as well as a list of future eclipses:
What’s Happening Downtown
The Myriad Gardens is hosting the 3rd annual Tulip Festival this Saturday and Sunday. This event is free to attend, runs from 9:00 AM to 6:00 PM each day and will feature live music, food vendors, and most importantly the blossoming of hundreds of tulips around the Gardens.
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, Brandon Ingerson, Jenni Hess
Sources: [1] Wall Street Journal [2] Bloomberg