Dear Clients,
I hope this letter finds you well. As we near the end of February, I wanted to take a moment to update you on our thoughts regarding the current economic environment and how it may impact your investments.
Inflation continues to be the hot topic this month. As expected, the Federal Reserve slowed its pace of rate hikes in February, electing to raise its benchmark interest rate by only a quarter percentage point. This is the smallest rate hike increase since March of last year. This was welcomed news, signaling central bankers are recognizing price pressures are easing. In fact, Fed chair Jerome Powell admitted for the first time that “the disinflationary process has started.” The tight labor market continues to be the biggest obstacle for monetary policymakers. Because of this, we expect Fed officials to continue raising rates in small increments with perhaps two more in the pipeline this year.
While these factors may present challenges, we believe they also create opportunities for those who are well-informed. We believe there is a secular trend away from megacap growth stocks. We should expect value stocks, small-caps, commodities, and international equities will remain favorable.
I would like to formally welcome Tyler Hardt to the Moran Wealth Management team. As a 14-year industry veteran, CFA charter holder and Wharton MBA graduate, Tyler brings a wealth of expertise to our firm. We are excited for him to join our Investment Management Committee that helps guide our firmwide investment strategy. Tyler will also serve as Head Portfolio Manager for two of our new investment portfolios—Deep Value and Strategic Income. We are excited to expand
our investment offerings through Tyler’s background in fundamental analysis. I encourage you to check out this month’s Economic Commentary authored by Tyler to get a sense of his deep understanding of the markets and the broader economic landscape. We believe Tyler’s expertise and leadership will help us continue to provide exceptional service and results for our clients…
To continue reading, please download the full Moran Monthly Digest here.