Welcome to our April 2024 Viewpoints, a monthly bulletin from PDS Planning to our valued clients and friends. Our goal with each issue of Viewpoints is to provide you with a wide variety of perspectives on life and wealth. Feel free to share with others.
By Drew Potosky, CFP®,
Posted: 4/19/2024
Inflation
The services sector of inflation has been a primary reason for unexpectedly higher readings the last couple months. Services account for 57% of the consumer price index [CPI] and are up 5.27%. This compared to the total CPI inflation reading of 3.50%. With the chance of energy creeping higher in the next 6-12 months and the sticky nature of service pricing, it’s possible the fall of inflation takes a bit longer than initially expected.
Q1 Market Summary
In the April Market Commentary, I mentioned the end of Q1 and posted a simple visual of returns. The table below goes beyond Q1 2024 and looks at the last 1-, 3-, 5-, and 10-year annual performance of a handful of primary market benchmarks.
Leading Indicators have Leveled Off
The leading economic indicators have been falling since 2021. A precipitous fall such as the one shown current has usually led into a recession – the darker red bars. As of late, the economy has shown more sign of strength as more of the business cycles turn over into year-over-year growth, evidenced by a flattening line. This doesn’t mean we’re out of the woods, but it’s a welcome sign after years of weakness.
Cleveland Guardians
The Guardians are off to a great start in 2024 and sit atop the central division. They’re tied with the Yankees with the second best record in baseball. The team started 9-2 on the road. The last time they did that? 1948. When they won it all. Get your champagne ready.
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