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Weekly Economic Update: March 18, 2024

Stocks fell for the second straight week on inflation concerns despite a report on consumer prices that was initially well received by investors.

Stocks Slide
Tuesday was the only bright spot during the week as stock prices rose after the Labor Department report showed the Consumer Price Index rose 3.2% in February compared with a year earlier. It was a bit warmer than economists expected but cooler than investors feared. The news sparked a day-long rally, with the Standard & Poor’s 500 stock index setting its 17th record high of the year.

Following Tuesday, caution lingered as investors parsed the underlying data behind headline consumer inflation numbers. Thursday's fresh producer price index (PPI) report showed that wholesale prices increased by 0.6% in February, more than the expected 0.3% increase. Additionally, core PPI (excluding food and energy) was hotter than expected.

Retail sales, also reported on Thursday, were disappointing, rising less than expected and adding to the inflation angst. The news rattled investors and contributed to stocks closing lower for three consecutive days to end the week.

Finding Financial Balance 

A recent study by Savings.com shows that 47 percent of parents provide their adult children with financial support. Termed "parental patronage" by many, some parents even contribute more to their adult children than they do to their retirement accounts. For example, among parents providing financial support, the average monthly contribution towards their children is $1,384, while the average amount towards their retirement savings is $609.  Non-retired parents still in the workforce contributed even more to their adult children, at an average of $1,476 monthly.

We know there is a unique circumstance behind every financial decision. And as parents ourselves, we also know it's natural to want to help our children, regardless of age. At the same time, balance is essential to maintaining financial well-being.

Whether it's preparing for retirement while financially helping one's adult children or providing guidance during volatile moments, Capstone can help you strike that balance.

With that in mind, please let us know if you struggle to find balance or are having challenging financial conversations with family members. We can help prepare, moderate, or provide insights.

High earners and successful people make a conscious effort to cultivate relationships with people of the same ilk, people who cheer them on, hold them accountable, model what’s possible and inspire them to aim higher.  As author Barbara Huson advises, ignore the pessimists, worrywarts, naysayers, and seek out people who will support and encourage your success.  

Parting Shot

Snow fun! Photo by Mike R. Tice, Woodlank Park, CO.

Capstone built our reputation on friendly service, impeccable honesty, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

[email protected]