April 2023 Monthly Recap

Talking Points

  • Inflation dropped for a ninth consecutive month, from 6% to 5%, marking the lowest reading since May 2021

  • The labor market remained strong as the US economy added 236,000 jobs and unemployment fell from 3.6% to 3.5%

  • GDP growth slowed from 2.6% to 1.1%, missing the target of 2% as business investments and inventories declined

  • US Manufacturing PMI increased to 50.2, returning to expansion territory (over 50) as expectations of future sales increased

  • The CBOE Volatility Index (VIX) closed at its lowest monthly level since mid-2021, dropping to 15.78 in April 

Market Health Indicator*

Market Data
market health indicator monthly index performance

*The Market Health Indicator is a monthly indicator created in September 2021 that is designed to measure market health on a scale of 0 - 100, analyzing various market segments such as economics, technicals, and volatility using data back to January of 2000. Higher scores indicate healthier market conditions.

  

Fun Facts

Another One Bites the Dust

•    Those tiny pockets in your jeans actually have (had) a purpose. When jeans were invent-ed in the late 1800’s it was intended as a safe place to store pocket watches!

•    Before focusing on his love of baking, Wally “Famous” Amos was a talent rep for Simon & Garfunkel, Diana Ross, and Marvin Gaye.

•    It takes a drop of water approximately 90 days to travel the entire length of the Mississippi River.

•    Don’t forget to buy flowers and make brunch reservations. May 14th is Mother’s Day!
 

Another one bites the dust.

Regulators took possession of First Republic Bank and sold most of its assets to JPMorgan Chase. JPMorgan will also absorb all of the bank’s deposits.

This is the third American bank failure since March as specific regional banks became more susceptible to major withdrawals. 

First Republic wasn’t as ‘niche’ as failed Silicon Valley Bank or Signature Bank, but it did have a narrow exposure to wealthier clients. Two-thirds of accounts at the bank had balances above $250k (above the FDIC threshold).

Customers withdrew over $100 billion from First Republic in Q1, a 40% reduction in deposits.

While depositors have been protected from the recent banking jitters, the biggest banks are getting bigger while smaller banks are finding it more difficult to do business.
 

To view the rest of the Market Update, click here. 

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