However, companies did not sell the massive influx of imports, leaving some to accumulate in warehouses across the country. This surge in inventories contributed more than two percentage points to GDP. Why? Inventories act as a balancing figure—when they increase, it adds to GDP; when they decline, it detracts from GDP.

We analyze a range of economic and financial indicators through a focused perspective (a narrow lens), particularly regarding how sensitive matters may impact investors. This focused approach closely aligns with our expertise in financial advising and planning.

That leads us to this week's topic: tariffs. Our goal is to strip out the political angle and view the potential for new tariffs through the narrow lens of the market, i.e., investors.

We analyze a range of economic and financial indicators through a focused perspective (a narrow lens), particularly regarding how sensitive matters may impact investors. This focused approach closely aligns with our expertise in financial advising and planning.

That leads us to this week's topic: tariffs. Our goal is to strip out the political angle and view the potential for new tariffs through the narrow lens of the market, i.e., investors.

Our discussions have included Fed policy, the economy, and the surge in inflation since the pandemic. Why? In large part, they are all a part of the stock market pricing equation.

Everyday shoppers are relieved prices aren’t rising at 2022’s pace, but their primary focus has been on the current price level, which is much higher than pre-pandemic levels.

It came as no surprise that the Fed reduced its key rate, the fed funds rate, by 25 basis points (bp, 1 bp = 0.01%) to a range of 4.50—4.75%. That follows the Fed’s 50 bp rate cut in September.

A closely watched tool from the CME Group is pricing in a quarter-point rate cut at the November 7th Fed meeting, and it favors another quarter-point rate cut at the December 18th meeting.

The bull market turned two years old last week. Since bottoming, the S&P 500 Index has climbed almost 64% (through 10/17/24).