{"id":6705,"date":"2023-03-28T13:59:01","date_gmt":"2023-03-28T19:59:01","guid":{"rendered":"https:\/\/www.keystonefinancial.com\/?post_type=oi_article&p=6705"},"modified":"2023-03-28T13:59:03","modified_gmt":"2023-03-28T19:59:03","slug":"market-commentary-march-28-2023","status":"publish","type":"oi_article","link":"https:\/\/www.keystonefinancial.com\/articles\/market-commentary-march-28-2023","title":{"rendered":"Market Commentary | March 28, 2023"},"content":{"rendered":"\n
What\u2019s your jam?<\/p>\n\n\n\n
When you think of fun, are you running an Arctic marathon? Biking to your favorite burger place? Gaming with friends online? Each has inherent risk: Polar bears and hypothermia, traffic and flat tires, and viruses and identity theft. Those who enjoy these activities, understand the possible risks and manage them.<\/p>\n\n\n\n
Investing is similar. Investors are willing to take on risk to achieve their long-term financial goals, but not everyone manages it in the same way. Some people are willing to embrace risk, and others prefer a less adventurous option. While it\u2019s not possible to completely eliminate the risks associated with investing, it is possible to manage investment risk with asset allocation, diversification, and other strategies.<\/p>\n\n\n\n
Last week, investors responded to the uncertainty created by bank closures in a variety of ways. Some sold assets they felt had too much risk for the current market environment, opting for sectors and industries that have historically shown resilience during economic slowdowns. Others snapped up investments at discounted prices, reported Ryan Ermey of CNBC. Some investors did nothing.<\/p>\n\n\n\n
\u201cThe smartest thing to do when you have a lot of uncertainty is to sit back and gather information and do your analysis and not jump trying to make big changes,\u201d stated a source cited by Lu Wang and Isabelle Lee of Bloomberg.<\/p>\n\n\n\n
Uncertainty is likely to persist as economists and analysts assess how the American economy may be affected. \u201cBanking panics aren\u2019t something to be trifled with. As Fed Chairman Jerome Powell acknowledged on Wednesday, the latest one is sure to slow the economy\u2026The problem, however, isn\u2019t the possibility of more bank failures. It\u2019s that banks are likely to curtail lending\u2014lending they had already started to limit,\u201d reported Ben Levisohn of Barron\u2019s.<\/p>\n\n\n\n
As bank lending tightens, economic growth in the United States will probably slow. When it becomes more difficult for households and businesses to get credit, consumer spending tends to fall. Since consumer spending is the primary driver of economic growth in the U.S., the economy is likely to be affected and we may enter a recession, reported Rich Miller of Bloomberg.<\/p>\n\n\n\n
Major U.S. indices finished the week higher, while U.S. Treasury yields rose before retreating again.<\/p>\n\n\n\n
If you are feeling unsettled by market volatility, get in touch. We can review your goals and allocations to make sure they\u2019re aligned.<\/p>\n\n\n\n