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Weekly Economic Update: October 23, 2023

Rising bond yields and uncertainty over whether this was the close of the Fed’s rate-hike cycle dragged markets lower last week despite solid corporate earnings results.

The Dow Jones Industrial Average sank 1.61%, while the Standard & Poor’s 500 fell 2.39%. The Nasdaq Composite index, which has led for much of the year, slumped 3.16%. The MSCI EAFE index, which tracks developed overseas stock markets, retreated 1.67%.

Rising Yields Sink Stocks
Stocks rallied to start the week on earnings optimism before losing momentum over rising bond yields. Yields rose after traders speculated that strong economic data might persuade the Fed to raise rates. By mid-week, stocks turned lower as the 10-year Treasury yield moved above 4.9% for the first time since 2007, while mortgage rates hit 8%–the highest level since mid-2000.

Stocks were under pressure Thursday as the 10-year Treasury yield moved closer to 5% and in response to comments from Fed Chair Powell that inflation remained too high. With the 10-year Treasury yield crossing above the 5% mark on Friday–and ahead of a weekend of uncertainty in the Middle East–stocks weakened further, ending a down week on a sour note.

Crafting a New Chapter in Life?

As the concept of retirement evolves and more people are looking for alternatives to the traditional “golden years,” a new trend is gaining momentum—Restylement. This is a shift from simply stepping out of the workforce after a certain age to intentionally crafting a new chapter in one’s life that aligns with personal well-being, passions, and purpose.

The essence of Restylement lies in its departure from the conventional idea of retiring after several decades of work and settling into a sedentary lifestyle. 

Bid adieu to the daily grind and say hello to a life brimming with vibrancy, opportunities, and meaning. It’s not just a phase of life; it’s a lifestyle choice.

One of the key aspects of Restylement is financial preparedness. Whether you’re in your 30s, 40s, or beyond, considering Restylement often involves assessing your financial situation, adjusting your savings and investments, and planning for a future that aligns with your dreams. Restylement can take various forms: from starting your own business to reducing your working hours, traveling more, or investing more time in family and community activities.  For those who love their current professions but seek a better work-life balance, Restylement can provide the solution. It might involve working fewer days a week, letting go of overtime pay, or exploring new areas of personal interest.

What our clients are saying...

What a pleasure and an honor to receive this recent compliment. Our clients’ trust fuels our dedication to delivering exceptional service.

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Do you have subscription fatigue?

Most video streaming services have increased rates and some announced they will start including ads. On average, U.S. consumers pay $48 per month on paid subscription video services, with Millennials spending more than any other generation — an average of $54/month. Many of us pay for cable TV on top of streaming services. It all adds up to a hefty monthly expense. “Subscription fatigue” is a growing phenomenon according to a Deloitte digital media survey. Is it time to log off and reach for a good book?  Let us know if you have any reading recommendations… Join the discussion on our Facebook page.

Capstone built our reputation on friendly service, impeccable honesty, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

info@capstoneinvest.com