Jochim & Associates February Market Update

Hello from Jochim & Associates:

January's inflation report surprised to the upside, coming in hotter than expected. It is uncertain yet whether that will impact the Fed's decision to do a rate cut in March, but it shows that the theme of the last two years around inflation's stubbornness is alive and well. Most of the headline CPI is attributable to strong price growth in shelter costs and time will tell if those numbers remain elevated.

• Blackrock, Fidelity and a host of other financial firms have begun offering Bitcoin ETFs cutting through some of the red tape that have made it difficult to own or purchase the notorious crypto currency. This will make it easier for investors to purchase, own and sell Bitcoin on the market and for financial advisors to openly discuss it with clients.
• The S&P hit an all-time high at 5000 in early February to the delight of many a beleaguered investor. The last few years have seen dynamic swings in even the "safest" assets and considerable volatility, but nonetheless markets have risen to new highs once again. There is some concern among investors that the rally is highly localized to a handful of companies in the S&P and Nasdaq, but it waits to be seen if other companies will follow or if the outperformance will continue to be among a few big names.

Jochim & Associates View on Markets

With inflation proving more stubborn than anticipated in January's CPI report, markets are flashing signals that they intend to remain interesting this year. CPI was still lower in January than it was in December of last year, so inflation continues to move in the right direction which means the Fed is likely to keep cutting which will be good for markets, good for fixed income, and ultimately good for investors. That being said market headwinds continue, so aggressive investors should keep their ear to the ground and call their advisors to ensure they are smartly allocated for the long term.

The fact that large firms are also beginning to offer their own Bitcoin ETFs and whispers abound about an Ethereum ETF soon to follow means that Crypto is beginning to obtain a larger market showing. It should be noted that Crypto remains an incredibly volatile asset whose long-term viability remains suspect, but the fact that it is becoming more main stream could have interesting long-term implications for the asset class as a whole.

Additional Topics of Interest

Lastly, follow this link to view the "Our Videos" section at the bottom of our Jochim & Associates team homepage where you will find videos providing great additional market insight. As always, don't hesitate to call our office with questions or to discuss concerning market activity or investment strategies.

We're here to help you feel more confident about your financial future. Learn more about us.