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Weekly Economic Update: November 20, 2023

Stocks extended their November rally last week as investors cheered lower-than-forecast inflation data.

The Dow Jones Industrial Average gained 1.94%, while the Standard & Poor’s 500 added 2.24%. The Nasdaq Composite index rose 2.37% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, increased 3.36%.

Stocks March Higher
A better-than-anticipated consumer inflation number on Tuesday sent bond yields sharply lower, igniting a powerful, exceptionally broad-based rally that saw 91% of all New York Stock Exchange volume advancing in price and a similarly substantial advance (85%) on the NASDAQ. Small-cap stock performance was solid, surging 5.2%, more than double the advance of the S&P 500.

Further gains came the following day as wholesale price inflation rose even slower than consumer prices. The rally paused in the final days of trading as stocks digested their gains and investors assessed weak retail sales and industrial production reports and a rise in continuing jobless claims.

End of Year Financial Moves

As we near the end of 2023, there may be a few financial moves still to make. For instance, have you taken your Required Minimum Distribution (RMD)? Under the SECURE 2.0 Act, the age for RMDs was increased to 73 — offering employees an additional year to increase the savings in their tax-free retirement accounts and avoid a taxable distribution. Their first RMD must be taken by April 1 of the year they turn 73, and by December 31 each following year. So before the end of the year you must take the required minimum distribution out of your pretax retirement accounts such as IRA’s, 401k’s, even qualified annuities. There are penalties if this is not done by year’s end.  

Beware of Scams Tied to AI and Gift Cards 

This holiday season, new risks tied to artificial intelligence should have consumers on high alert. AI technology can easily impersonate your likeness. So if you use voice passwords for your accounts, that may be compromised. To limit that risk, consumers should use multifactor authentication, says the chief risk officer at Visa, a process that requires extra steps in addition to a password, such as a verifying a code sent by email or text, answering a secret question or scanning your fingerprint.

Other tips Visa is emphasizing this holiday season include avoiding public Wi-Fi for shopping, and generally staying vigilant of deals that may be too good to be true.

Gift Card Scams 
Crooks are tampering with gift cards before you even buy them.  When buying gift cards at stores, look for signs of tampering, such as protective strips covering card numbers and PINs that have been removed or barcode stickers covering up the original barcodes. A better option to avoid cards that have been tampered with is to buy e-gift cards from retailers’ websites and email them to recipients. 

A Time for Thanksgiving

Thanksgiving gives us a chance to appreciate what we have – friendships, relationships, and a sense of connection. These gifts are priceless.  Thank you for choosing Capstone as your trusted financial professional and for allowing us to help you pursue your goals. That’s a trust we never take for granted. We wish you and your family a Happy Thanksgiving!

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