On January 19, 2023, the U.S. federal government officially reached its $31.38 trillion debt limit, forcing the Treasury Department to undertake “extraordinary measures” to keep paying off federal debt without going into default. As the possibility of default increases, market volatility could rise. The federal...
On January 18, 2022, Amazon began laying off 18,000 employees, the largest mass layoff in the company’s history. Layoffs are among the practices companies are implementing to prepare for an expected recession in 2023. Companies are enacting layoffs and other cost-cutting measures. Microsoft, Teladoc, DirecTV,...
On January 13, 2023, Reuters reported that “gold prices scaled over an eight-month peak… holding above the key pivot of $1,900/oz.” This latest rally in gold prices may continue, pushing the precious metal’s price to record highs in 2023. Gold prices began rallying before the year started. On January 4, 2023, Fox...
The S&P 500 ended 2022 down 20% as the stock market logged its worst annual performance since 2008, according to CNBC. Analysts predict that this market turmoil could bleed over into 2023 and perhaps beyond, creating a “lost decade” for portfolios. Stock markets saw heavy losses in 2022. When markets closed on...
Between December 22 and 23, 2022, Congress passed a $1.7 trillion bill to provide federal funding until September 2023. The bill was passed just before a deadline to avoid a partial government shutdown, and it will increase government spending as the federal debt continues to rise. The new bill includes budgetary...
The cryptocurrency market lost trillions of dollars in 2022, according to a December 18, 2022, article by Forbes. Touted by some as “digital gold,” Bitcoin and other cryptocurrencies have since experienced a tumultuous year that has placed the asset’s heretofore unproven “safe-haven” status into question. Instability...
On December 12, 2022, the Federal Reserve raised interest rates to a 15-year high with an increase of one half-point. While this rate hike was smaller than previous ones in 2022, Federal Reserve Chairman Jerome Powell emphasized that the fight against inflation is not over yet. Even as its pace of monetary tightening...
In November 2022, gold prices recorded their best monthly performance in 2 years, rising almost 8%, from $1,645/oz. to $1,753/oz. Gold has continued to perform strongly in the weeks since, while the outlook for gold appears to be in the precious metal’s favor. Central banks are increasingly allocating gold into their...
The yield on the 10-year U.S. Treasury note dropped below that of the two-year Treasury note, creating the largest inversion in the yield curve since 1981. Historically, a yield curve inversion between these two Treasury notes has signaled an oncoming recession. As 2023 approaches, this recession signal could be...
The traditional 60/40 stock/bond portfolio is on track for its worst year since 1937 according to research from asset management firm Leuthold Group. Portfolios are exiting 2022 in fragile positions and may be vulnerable to additional downturns in 2023. Portfolios based on stocks and bonds have experienced...
On November 14, 2022, The New York Times reported that Amazon planned to lay off as many as 10,000 employees that week, the latest of many announced layoffs from large corporations this year. Large companies appear to be experiencing the negative effects of a turbulent economy and are taking steps to prepare for...
On November 8, 2022—election day—the price of gold surged 2.1%. This jump was part of a larger 5% upward movement in gold’s price that began several days earlier. Likewise, silver prices also saw growth, rising 10.5% over the same period. Demand for precious metals such as gold has risen in the current environment of...
