Market Memo

June 2023 – By Bob Veres

Pretty much every economic theory rests on the idea that prices are set by the balance between supply and demand.  If there are more buyers than sellers or more demand than supply, prices will go up because the buyers will be bidding against each other.  If there are few buyers, prices will have to go down to attract more buyers back into the market.

Which raises an interesting question: who are the buyers in the stock market?

Market Minute

June 2023 – By Scott Rosenquist, CFA®

Recent commentary from two Federal Reserve officials have increased the odds of a pause on interest rate hikes after their upcoming meeting.  This was a sharp change from previous market expectations that another hike could be on the way. Fed Chair Jerome Powell spoke in May and highlighted the significant policy tightening that has taken place and the uncertainty of the lagged effects on the economy.  “Having come this far, we can afford to look at the data and the evolving outlook to make careful assessments,” he said. The latest strong employment report did little to change this setup going into next week’s meeting.  The Fed chair’s communication will be closely watched for future policy moves including the possibility of resuming hikes in July.  Other central banks recently resumed raising rates after a pause.