Transcript:
Tom Vaughan:
Hello, everybody, welcome to Thursday, the S&P 500 was down point 9%. Today, interesting that the market was down even though some of the numbers that came out for inflation were a little bit better than expected. So the PCE the personal consumption expenditure index, which is the Feds preferred measure of inflation came out today for May, the top line inflation actually was higher than April, but less than expected by a little bit. And core inflation, where they take out energy and food was actually down again, and actually had peaked out in February has been down every month since and actually fell a little bit more than expected. But the numbers were still very high, historically high, as we’ve seen with lots of these different inflation situations. So that might have been part of what factored into the downturn that we had today. We also saw that, you know, consumer expenditures after inflation were actually down in May, after being up quite a bit in April.
So, you know, the, we’re starting to see some of the economic impact to consumers, from the higher inflation, and the higher cost of borrowing and those types of things that that’s happening because of these interest rates that the Fed is pushing on. So I believe the last piece that might be an explanation for why the market was down today is just, you know, there’s again, we kind of hit all this overhead resistance, it failed, we had a big drop on Monday. And then you know, really just kind of damaging and continuing to fall down. As far as that goes, it was down 2% today. So actually point nine, there was a little bit of a bounce off of that bottom. But the trend right now, in the very short term is definitely to the downside, it looks likely that we’re kind of going back down to try to challenge that low. That was said a few weeks ago. So we’ll see how this plays out. Again, during this entire timeframe, since the leading economic indicators were released on the 17th of June, and they triggered some sell or caution signals for me. We have been getting defensive. We did a little bit more today. Probably pretty set with where we are now. It’s working out well. I’m glad that we’re defensive, at least in this short term period here where things have been coming down. We’ll see how that plays out. But again, tomorrow is my summary that I do at the beginning of our talk money with Tom show 1215 to one o’clock if you’d like to join you can put in some questions if you have that type of thing, and I’d be happy to answer them for you. And look forward to talking to you tomorrow. Thank you very much.