With the Fed embarking on a new course of monetary tightening amid continued fighting in Ukraine, stocks staged a powerful, broad-based rally last week.
The Dow Jones Industrial Average jumped 5.49%, while the Standard & Poor’s 500 gained 6.16%. The Nasdaq Composite index soared 8.18% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 5.17%.1,2,3
After surrendering gains on Monday, stocks surged higher for four consecutive days. The rally was propelled by strong economic data, the outcome of last week’s Federal Open Market Committee (FOMC) meeting, and reports that Russia made interest payments on its sovereign debt, avoiding technical default.
The uptrend began with a drop in oil prices and a lighter-than-expected wholesale inflation report. Stock prices initially buckled following Wednesday’s hawkish FOMC announcement, but turned higher as investors interpreted the Fed’s news as a welcome plan to combat inflation. Stocks extended their gains into the final two trading sessions, cementing their best weekly performance since November 2020.4
The Fed’s Plan
For the first time since 2018, the Federal Reserve hiked the federal funds rate, increasing it by 0.25% and signaling that it expected to raise rates at a faster pace than originally outlined in December. Based on its projections of future fed fund rates, the Fed may implement seven quarter-point rate hikes this year and another three to four next year.5
In a statement following the FOMC meeting, Fed officials expressed rising concerns over inflationary pressures made more acute by the war in Ukraine. Members also indicated that they would soon announce a plan to reduce the Fed’s $9 trillion balance sheet.6
This Week: Key Economic Data
Wednesday: New Home Sales.
Thursday: Jobless Claims. Durable Goods Orders. Purchasing Managers’ Index (PMI) Composite Flash.
Friday: Consumer Sentiment.
Source: Econoday, March 18, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Monday: Nike, Inc. (NKE).
Tuesday: Adobe, Inc. (ADBE).
Wednesday: General Mills, Inc. (GIS).
Source: Zacks, March 18, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
WEALTH WATCH: IS FORCED SELLING CAUSING DOWNWARD PRESSURE?
We are having to walk, or trade as you might say, a very tight rope. Once the Russian money is liquidated this will ease the selling. I’m not saying selling will not continue, but it will ease the pressure. There are still a lot of negatives, like 40-year high inflation and of course...[READ MORE] 7
Vance Howard on Bloomberg Radio
This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice.
Do You Have to Pay Taxes on Your Hobby?
Whether you picked up embroidering, dog grooming, or making your jewelry, a side hobby may or may not require paying taxes. Here are some things to consider when determining whether your activity is a hobby or business:
- Is your hobby carried out in a businesslike manner?
- Do you maintain complete and accurate books and records for your hobby?
- Is the effort you put into your hobby intended to make a profit?
- Do you depend on the income from your hobby for your livelihood?
- Do you have the knowledge needed to carry out your hobby as a successful business?
- Have you made a profit from your hobby?
If you receive income from your hobby with no intention of making a profit, you may have to report the income to the IRS. 8
* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
How Well Do You Know Your SPF?
We all know that protecting your skin from the sun is important, but did you know that not all sunscreens are made equal? Dermatologists have some specific recommendations when it comes to your SPF. Here are some tips:
- Choose a broad-spectrum sunscreen that protects you from both UVB and UVA rays.
- Always use at least SPF 30.
- Choose a water-resistant sunscreen.
- Don’t forget your lips! Apply sunscreen to your lips or use a chapstick with SPF 30 or higher.
- Reapply your sunscreen every 2 hours or more often if you’re in the water or sweating a lot.
- Apply enough sunscreen to cover all skin that clothing will not cover. Most adults need about 1 ounce — or enough to fill a shot glass — to fully cover their body.
- Apply your sunscreen 15 minutes before going outdoors.
These tips will help you choose the best sunscreen to protect your skin for years to come. 9
Total Time: 40 mins
- 1 large head cauliflower, sliced into 1-inch thick slices
- 2 tablespoons olive oil
- 1 teaspoon italian seasoning
- salt and pepper
- 1 cup marinara sauce
- 8 ounces fresh mozzarella cheese, sliced
- 3 tablespoons parmesan cheese, for topping
- fresh basil, for topping
Garlic Butter Breadcrumbs
- 1 tablespoon unsalted butter
- 1 garlic clove, minced or pressed
- 1/3 cup seasoned panko bread crumbs
- Preheat the oven to 425 degrees F.
- Slice the cauliflower from the top down, into 1-inch thick slices. Place the cauliflower on a baking sheet. Drizzle or brush with the olive oil so it covers the slices. Sprinkle with the italian seasoning and a pinch of salt and pepper all over. Roast the cauliflower for 15 minutes.
- After 15 minutes, spoon the marinara over the cauliflower. Place a slice of the fresh mozzarella on top. Bake for 15 more minutes, or until the cheese is bubbly and melted.
- Remove the cauliflower and top with the breadcrumbs, fresh basil and a sprinkle of parmesan.
- For the Garlic Butter Breadcrumbs: heat the butter in a skillet over medium-low heat. Stir in the garlic, cook for a few seconds, then stir in the bread crumbs. Cook, stirring often, for 2 to 3 minutes until golden.
Footnotes and Sources
1. The Wall Street Journal, March 18, 2022
2. The Wall Street Journal, March 18, 2022
3. The Wall Street Journal, March 18, 2022
4. CNBC, March 18, 2022
5. The Wall Street Journal, March 16, 2022
6. The Wall Street Journal, March 16, 2022
7. howardcm.com, March 14, 2022
8. IRS.gov, June 30, 2021
9. AAD.org, September 30, 2021
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2022 FMG Suite.