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Financial Synergies Wealth Advisors is a fee-only, fiduciary Financial Advisor in Houston, Texas. We specialize in wealth management services, including comprehensive financial planning and investment management.
For more than thirty years we’ve been serving the financial needs of individuals, families, and businesses in Houston, Texas and around the country.
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4400 Post Oak Pkwy #200
Houston, TX 77027
Financial Synergies Wealth Advisors is a fee-only, fiduciary Financial Advisor in Houston, Texas. We specialize in wealth management services, including comprehensive financial planning and investment management.
For more than thirty years we’ve been serving the financial needs of individuals, families, and businesses in Houston, Texas and around the country.
Wealth Management Services include financial planning, retirement planning, investment management, tax planning, insurance planning, estate planning, and company retirement plans.
Week in Review: Third Straight Loser
Week in Review: Third straight losing week for the S&P 500.
The S&P 500 dropped 2.8% this week, unable to get past concerns about rising rates and the Fed’s hawkish mindset. The Nasdaq Composite (-3.8%) and Russell 2000 (-3.2%) underperformed the benchmark index with losses over 3.0% while the Dow Jones Industrial Average fell 1.9%.
It was reported last week that bullish sentiment among individual investors recently hit a 30-year low, setting the stage for a contrarian-minded rally this week. The rally took place on Tuesday, and briefly continued on Thursday, before a bearish sentiment took hold of the market.
Nine of the 11 S&P 500 sectors closed lower with the worst performers being the communication services (-7.7%), energy (-4.6%), and materials (-3.7%) sectors. The defensive-oriented real estate (+1.2%) and consumer staples (+0.4%) sectors ended the week in positive territory.
The market had done a good job fending off the Netflix (NFLX) disappointment in which NFLX tanked 35% the day after reporting a decline in subscribers. Earnings reports, after all, were mostly better than expected, and they were from a diversified batch of companies, including Tesla (TSLA) and seven Dow components.
The problem this week was mainly threefold: 1) the 10-yr yield rapidly approached 3.00%, hitting 2.97% before ending the week eight basis points higher at 2.91%, 2) Fed Chair Powell wasn’t ready to declare peak inflation and said the Fed could move to a tight policy after reaching a neutral rate, and 3) weakening technical factors.
On the latter, the S&P 500 couldn’t stay above its 200-day moving average (4497) and fell back below its descending 50-day moving average (4407).
A few more notes on the Fed, it didn’t help that Chicago Fed President Evans, who is one of the more dovish Fed members and was supposed to be a FOMC voter next year, announced plans to retire in early 2023. In addition, St. Louis Fed President Bullard (FOMC voter) said the fed funds rate should be at 3.50% by year-end.
The 2-yr yield, which is sensitive to expectations for the fed funds rate, climbed 27 basis points to 2.72%.
Source: Briefing Investor
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