Weekly Market Update | March 25, 2023

The Week on Wall Street

Stocks posted their best week of the year, sparked by news that the dovish Fed decided to keep rates steady and signaled three rate cuts were still possible this year.

Stocks Bounce Back

As widely expected, the Fed left rates unchanged at the conclusion of its two-day meeting. But somewhat less expected, the Fed signaled its inclination to cut interest rates three times this year—each time by a quarter percentage point. That was a positive surprise for some, who worried that recent hot inflation reports would cause the Fed to reconsider its stance.

Markets pushed higher Wednesday following the news, with all three averages closing at record highs. The rally continued through Thursday, boosted further by news that existing home sales rose 9.5 percent in February.

The week’s rally was broad-based overall, with 10 of the 11 S&P 500 sectors posting gains (health care dropped slightly). At one point late in the week, nearly one in four S&P 500 stocks were trading at 52-week highs. That was the highest proportion in three years, which supports the idea that the rally was broadening out from mega-cap tech stocks.

Turning Point

The Federal Open Market Committee’s decision marks a turning point as the Fed signaled that its target range of 5.25 to 5.50 percent has topped out. That target range, in place since late last year, is the highest level in 23 years.

“We believe that our policy rate is likely at its peak for this type of cycle,” said Fed Chair Powell at the post-meeting press conference. He added that if the economy keeps on its current course, that the FOMC would likely “begin dialing back policy restraint at some point this year.” If the FOMC votes to ease it at its June meeting, it would be the first cut in four years.

Key Economic Data

Monday: New Home Sales.

Tuesday: Durable Goods Orders. Case-Shiller Home Price Index.

Wednesday: EIA Petroleum Status Report. Survey of Business Uncertainty.

Thursday: Gross Domestic Product. Jobless Claims. Consumer Sentiment. Pending Home Sales.

Friday:  Personal Income and Outlays. International Trade in Goods. Retail Inventories.

Source: Econoday

Companies Reporting Earnings

Tuesday: McCormick & Company, Incorporated (MKC, MKC.V), Dave & Buster’s Entertainment, Inc. (PLAY)

Wednesday: Paychex, Inc. (PAYX), Carnival Corporation (CCL, CUK), Cintas Corporation (CTAS)

Thursday:  Walgreens Boots Alliance, Inc. (WBA)

Source:Zacks.com

Quote of the Week

“There is nothing so pitiful as a young cynic because he has gone from knowing nothing to believing nothing.”

– Maya Angelou

Sources: YCharts.com, March 23, 2024

Weekly performance is measured from the close of trading Monday March 18, to Friday, March 22, close.

Eating To Your Heart’s Content  

Deciding to change your diet can feel daunting. It can be challenging to figure out which one is “best” for you. Many fad diets come and go, but a few have stuck around. The most popular is the Mediterranean diet.

In this case, the Mediterranean diet is a lifestyle shift toward healthier eating patterns modeled after principles of Italian and Greek cuisine, which have remained relatively unchanged since the 1960s. Consuming this diet has been correlated with lower rates of heart disease, type 2 diabetes, and other chronic illnesses. The diet emphasizes eating more fruits, vegetables, legumes, nuts, seeds, fatty fish, whole grains, olive oil, and fewer meats and dairy products. The diet is flexible. Elimination isn’t the intention; the goal is to balance nutrient-rich and energy-dense foods.

Food is life, and healthy choices can help support a healthier life. While the Mediterranean diet could be a good option, no single diet will ideally fit everyone’s lifestyle, preferences, and health needs. So, discuss your dietary choices with your physician or registered dietitian first.

Tip adapted from Healthline.com

 

Roasted Tomato Freeform Pie

 

 

Servings: 4-6

Ingredients:

  • 2 pounds (907 grams) cherry or grape tomatoes
  • 10 large garlic cloves (about 50 grams), unpeeled and smashed with the side of a knife
  • 3 tablespoons (45 grams) extra-virgin olive oil
  • 1 tablespoon fresh rosemary, chopped, plus extra sprigs for finishing (about 3 grams)
  • 1 tablespoon fresh thyme, chopped, plus extra sprigs for finishing (about 3 grams)
  • Kosher salt, to taste
  • Freshly cracked black pepper, to taste
  • 1 batch Rough Puff Pastry Recipe (*see headnote)
  • 8 ounces (226 grams) brie, camembert, or other soft-rind creamy cheese, cut into ½- inch-thick slices (or, see headnote)

Directions:

  1. Roast the tomatoes: Heat the oven to 400°F/204°C. Spread the tomatoes and garlic in an even layer on an unlined baking sheet. Drizzle the olive oil over the tomatoes and toss well to combine. Sprinkle the rosemary and thyme evenly over the mixture, then season with salt and pepper.
  2. Transfer the baking sheet to the oven and roast until the tomatoes are blistered and appear collapsed, 25 to 30 minutes. Let the tomatoes cool completely. Raise the oven temperature to 425°F/218°C.
  3. While the tomatoes cool, roll out the puff pastry on a lightly floured surface to ¼ inch / 3 millimeter thick, a little larger than 15×15-inch / 38×38-centimeter square. Transfer it to a parchment-lined baking sheet (don’t worry if it hangs over the edge of the pan—you will be folding the edges over, then dock it all over with a fork.
  4. In a small bowl, squeeze the roasted garlic out of its skin onto the crust, and use a small offset spatula to mash it and gently spread it over as much of the base as you can, but aiming to leave at least 2 inches / 5 centimeters uncovered around the edges.
  5. Arrange the tomatoes in an even layer in the center of the dough, continuing to leave the edges uncovered. Arrange the cut brie (or other cheese) in an even layer over the tomatoes. Fold the uncovered edges up over the tomatoes, encasing the perimeter of the filling. Brush the egg wash evenly over the exposed puff pastry.
  6. Transfer the baking sheet to the oven and bake until the crust is evenly golden brown and very crisp, 30 to 35 minutes. Garnish with the extra rosemary and thyme sprigs, if using. Allow the pie to cool for 15 minutes before serving.

Recipe adapted from Bon Appetit

 

Fried Egg in Golf

A fried egg is when the ball is sitting down slightly in the sand. This is not the same lie as a plugged bunker shot, which tends to happen in the face of the bunker. A plugged lie is when the ball is nearly embedded and one of the tougher shots in golf.

A fried egg is when the ball is sitting with a circle around it – similar to the yolk of an egg (hence the name). You can’t get as good of contact as a clean lie in a bunker or nearly as much spin which is why it’s so challenging for players.

Once you assess the lie, confirm it’s a fried egg, not a plugged bunker shot. Next, grab your most lofted wedge. For most golfers, this will either be a sand wedge or lodge wedge.

You don’t want a gap or pitching wedge unless the lip is minimal or you might not have enough loft to get out. Even though you use a SW or LW, you won’t get any backspin like you would with a normal greenside bunker shot. This is why these lies are so tough when you’re short sided.

It is important to pick your landing area correctly, as the ball will hit the green and roll like crazy thanks to forward spin. A lot of times getting the ball just out of the bunker is key to seeing it hit and release toward the pin.

Tip adapted from theleftrough.com

Rules For Home Office Deductions

If you have a business and work out of your home, the IRS allows you to deduct certain expenses on your return. Here are a few key things to keep in mind:

  • The IRS requires you to use your office (or a part of your home) for “regular and exclusive use.” The part of the house should be your principal place of business, a place where you meet customers, or a separate structure dedicated to the business, like a garage or studio.
  • To calculate your deduction, you can use one of two methods:
  • The simplified option allows you to multiply the allowable square footage of your office by $5, up to a maximum of 300 square feet.
  • The regular method allows you to specifically calculate the actual expenses, such as rent, mortgage interest, taxes, repairs, depreciation, and utilities you pay for the portion of your home used for the business. You must determine the percentage devoted to business activities if you use only part of a space for your business.

* This tax tip is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals for more specific information.

Tip adapted from IRS.gov

  

Photo of the Week

Peregrine Falcon, Cantabrian Coast, Spain

 

Financial planning and investment advisory services offered through Cleveland Wealth, LLC, a Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified wealth advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.