Dear valued client,
Markets turned in a flat performance this first week of Q2 of 2023. Here’s a look at how the market faired in Q1 of this year:
S&P 500: 7.5%
Dow Jones: 0.42%
NASDAQ: 17.7%
TSX: 3.7%
How Central Banks engage in the wrestling match between inflation and interest rates will continue to heavily impact the trajectory of the market for the foreseeable future.
Speaking of inflation, OPEC (Organization of Petroleum Exporting Countries) and Russia announced a surprise cut in oil production by one million barrels a day starting next month. Reasons given for the cut varied from “to keep crude oil and petroleum product prices at a certain level,” to “a precautionary measure aimed at supporting market stability.” Whatever the reason, the development will hinder the fight against inflation as oil prices jumped 8% after the announcement.
Trump made his way to a Manhattan criminal court on Tuesday where he pleaded not guilty to 34 felony counts of falsifying business records. The case is complex, but at its core, Trump is accused of falsely labeling business records (paying off Stormy Daniels in exchange for silence about her alleged affair with him) in order to circumvent campaign finance laws. Prosecutors will have their hands full because in order for the charges to rise from a misdemeanor to a felony, they will have to prove that Trump falsified business records with the intent of committing or concealing a separate crime.
Finally, Finland officially joined NATO this week, more than doubling the size of the Western military alliance border with Russia… a development Putin is no doubt displeased with.
“Never mistake law for justice. Justice is an ideal, and the law is a tool.” – L.E. Modesitt Jr.
Have a terrific Easter weekend,
PW
PS. Enjoy the Masters! I have Scheffler going back-to-back. Should be fun to watch.
