Market Perspective & Economic News Recap

In this week's Market Perspective video, we dive into a few economic headlines and what they could mean for investors.

U.S. Economy Outperforms Expectations in Q2

During the second quarter of 2023, the U.S. gross domestic product (GDP) grew at a rate of 2.4%, exceeding expectations. This is a positive sign for the economy, indicating growth. However, it's worth noting that the personal consumption component of GDP slowed down compared to previous quarters. As consumption accounts for 70% of economic activity, this slowdown is something to keep an eye on. Gross private domestic investment, however played a larger-than-average role in this past quarter.

Federal Reserve Approves Quarter Percent Interest Rate Hike

In an effort to tackle inflationary pressures and manage the job market, the Federal Reserve approved a quarter percent (0.25%) interest rate hike. This move brings benchmark borrowing costs to its highest level in over 22 years. For investors, this could mean slightly higher returns on certain shorter-term investments.

Dow Jones Index Experiences Winning Streak

The Dow Jones Industrial Average recently achieved a 13-day winning streak, one of the longest since the 1980s. While consistent market gains are of course, great, they are not the norm. Historically speaking, on any given day, a market gain is nearly a flip of a coin at 53 percent of the time. By extending to 5-year review periods, stock markets were positive 90% of the time.

At Vector, we use a bucket-based approach to segment portfolios based on time and asset type. This we believe, aligns investments with your life's pursuits.

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