In a break from the norm we also wanted to share the below link geared towards those effected by the recent wild fires outside of Boulder, CO. As we embark on a new year it is a good reminder to review P&C Insurance with your agent. He or she can certainly help to address any shortfalls in your coverage so that you are prepared should a similar event touch your household.
Equities ground down with the S&P 500 returning -0.29% last week. Inflation pressure and worries about how fast the Federal Reserve will tighten weighed on equities. CPI inflation was released at a 7.0% year-over-year rate, while the PPI (producer price index) year-over-year was 9.7%. The inflationary indicators signaled to investors that a rotation out of growth names and into value names aligned with higher costs for many companies. This is one of the more pronounced rotations we have seen in the growth/value trade since November 2020 after the COVID vaccine was approved.
U.S. Treasury bond yields increased across the yield curve last week, led by yields on the 2-year and 3-year Treasury notes. On Wednesday, CPI data indicated consumer prices rose half a percent in December, 0.1% above the consensus estimate.The inflation in December was broad-based, impacting all industries to some degree. The week wrapped up with retail sales data indicating a decline in December of 1.9%, well below the expected decline of 0.1%. The large decline in retail sales in December is largely attributed to the pull forward in holiday shopping driven by the fear of shortages by consumers.