All the News from the Weather Report

American singer and songwriter Paul Simon wrote that he could get all the news he needed from the weather report on the album "Bridge Over Troubled Water." Certainly, here in Minnesota, talking about the weather is a common refrain. But that's not why I bring up the lyric.   

We believe it's important to ask, "Does the news cycle match my investment horizon?" Of course, your answer may change over time, and that's OK. 

In the short-term, economic indicators like monthly unemployment numbers, CPI data, and quarterly earning results provide clues to the economy's health. Short-term indicators are good at providing a short-term outlook. We pay attention to these reports and even some of the headlines because trends can emerge in aggregate.

Conditions experienced by a few companies could be an early sign of things to come across the industry. Recently Amazon, Tesla, Meta, and SalesForce announced cuts to their workforce. However, despite these announcements, a recent ADP employment report showed overall job growth.

Conflicting signals can happen when future expectations meet last quarter's data--delivered via breaking news. 

Coming up: January 17th, we will be hosting our quarterly market outlook. It's a live webinar to discuss these topics and answer your questions. Please find out more on our events page at vectorwealth.com/events.

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