Mar 8, 2023
Markets fell in February after robust economic data was released. This may seem counterintuitive - why would markets fall if the economy is doing well?
Simply put, strong data suggests the economy continues to run hot, which means strong demand could lead to stickier inflation.
This means the Fed may need to keep interest rates higher for longer than many investors expect to tame inflation. Bad for stocks in the short term.
We don’t envy Fed Chairman Jerome Powell. He’s between a rock and a hard place. If he continues to raise rates to ensure that inflation has been defeated, he runs the real risk of pushing the economy into a recession.
If he starts to slow the hikes, pause, or even reduce the rate hikes, inflation may stay at unsustainable levels - like February suggested. Time will tell.
As we wrap up this quarterly earnings season, it’s encouraging to see 67% of S&P 500 companies that have recently reported earnings beat analyst expectations for those earnings.
Companies are passing on higher costs to consumers who have proven they won’t back down without a fight.
In terms of winners and losers in February, the energy sector lagged others, while tech was the only sector to finish the month in positive territory.
China’s reopening continues to potentially drive demand trends higher, though the Chinese index fell in the month after geopolitical tensions intensified.
Our view remains the same regardless of how short-term inflation and economic data play out.
We expect choppy markets ahead, and we’ll stay focused on the core fundamentals vs. trying to predict the outcome in the macro.
In terms of our strategies – after a challenging 2022, all four of the Titan managed strategies are off to a solid start to the year. Our team is looking forward to finishing the first quarter strong.
It’s also been great to welcome clients into the new passively strategies: Automated Stocks and Automated Bonds. Both are designed to provide low-cost, tax-efficient, diversified exposure to the equity and debt markets, respectively.
We believe these are complements to our Titan managed strategies as well as the alternatives (such as Real Estate, Credit, and Venture Capital) that our partners manage.
We plan to host an investor call to recap the first quarter in early April, so please keep an eye out for an invite.
As always, we’re here for you so let us know how we can help. See you next month.
© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at firstname.lastname@example.org. 508 LaGuardia Place NY, NY 10012.