For the second consecutive week, the news headlines were dominated by corporate earnings and Federal Reserve talk. Forward looking expectations and the hedging (lower) thereof remain the talk of the town. No surprises there in my opinion as the great resetting continues to unfold and take shape. Many companies, even in the face of reporting solid quarterly earnings results, continue to warn of slower times ahead. Federal Reserve Chairman Jerome Powell gave a lengthy speech this week that outlined again his thoughts on where the economy stands and how he expects things to play out in the next few months. Similar to his speech last week, he emphasized that the “disinflationary” process had begun. At the same time, he reminded us that the Fed’s job of lowering inflation overall is far from complete. As usual, there were both applause and jeers from the proverbial economic audience. Some want more, some want less. Chairman Powell sits in the unenviable position of being the G.O.A.T. or the T.O.A.D. (terrible on any day – I had to look that one up – it’s new to me!). It takes a strong and resilient person to sit in his role either way.
On the political front, President Biden presented his second State of the Union Address on Tuesday which was met with mixed reviews. What was more apparent than anything, is that we, unfortunately, remain a country very divided in ideals and direction. From a “market” perspective, a divided government typically means no new major tax or policy changes which is welcome. From a “people” perspective, it means more mudslinging and generally negative rhetoric. Honestly, it’s a tough pill to swallow. For better or worse, we do have major topics to resolve on many levels and the simple reach across the aisle seems allusive right now. Personally, we all have our respective views and opinions. Those are the foundational principles we all cherish, respect, and love about this wonderful country. I only wish our elected leaders could move beyond the politics of it all and truly find common ground and a place to move forward. The divisiveness and deficits of our current state of affairs are unsustainable for the long term. That much we know. As we close in on the next election cycle (I can’t believe I am already typing this) let’s hope for more civility from our elected officials. Better yet, a calming, moderate, and unifying voice would be more than welcome.
We had another mixed bag of corporate earnings over the week, with one standout exception to note. The magic is back at Disney. With Bob Iger back at the helm, it appears that the joy and happiness of “the most magical place on earth” are returning. As a kid growing up in Florida and visiting the Magic Kingdom often, I am happy to hear that a return to their roots is coming back. Of course, things are “modernized” in many ways, but the simple beauty and enjoyment of that first movie or ride on Space Mountain will forever live in my soul. Such a good feeling! I know many of you can relate to that. Even if that memory is as simple as watching Pinocchio or Snow White, we have all been captivated by the magic those memories created. With the additions of Marvel, Star Wars and others, the next generation of magic is being created. I personally loved watching Iger speak this week and discuss his vision going forward of returning Disney to its creative roots. Good stuff in an otherwise circuitous week. I always say this, but it really is the little things in life that sustain us from time to time.
Enjoy your weekend!
https://www.cnbc.com/2023/02/09/joe-bidens-billionaire-tax-is-dead-on-arrival.html
Christopher E. Wasson, CFP®
President
Mosaic Asset Partners, LLC
1122 Kenilworth Drive, Suite 310
Towson, MD 21204
410.821.0089 fax 410.821.5993
MosaicAssetPartners.com
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