Recent market performance owes much to:<\/p>\n\n\n\n
- \n
- Solid earnings growth and strong corporate profits<\/strong>. Last week, 97 percent of the companies in the Standard & Poor\u2019s 500 Index had shared how well they performed in the fourth quarter of 2023. Overall, blended earnings for companies in the Index grew 4 percent year-over-year, exceeding expectations. Blended net profits were stable at 11.2 percent year-over-year, reported John Butters of FactSet.<\/li>\n\n\n\n
- Slowing Inflation<\/strong>. Last week, one of the Fed\u2019s favorite inflation gauges, the personal consumption expenditures (PCE) price index, showed inflation moved lower year-over-year. Prices rose 2.6 percent over the 12 months through December 2023 and 2.4 percent over the 12 months through January 2024. While inflation trended lower over the longer period, it increased month-to-month. In December 2023, prices rose 0.1 percent, and in January 2024, prices rose 0.3 percent.<\/li>\n\n\n\n
- Enthusiasm for artificial intelligence (AI)<\/strong>. Investors expect AI to boost productivity and corporate earnings. \u201cInnovations in electricity and personal computers unleashed investment booms of as much as 2% of U.S. GDP as the technologies were adopted into the broader economy. Now, investment in artificial intelligence is ramping up quickly and could eventually have an even bigger impact on [economic growth],\u201d reported Goldman Sachs.<\/li>\n<\/ul>\n\n\n\n
Last week, the Standard & Poor\u2019s 500 and Nasdaq Composite Indices closed at record highs, while the Dow Jones Industrial Average retreated. All three indices finished February with gains, reported Chuck Mikolajczak of Reuters. The U.S. Treasury market rallied with yields falling for all but the shortest maturity of Treasuries.<\/p>\n\n\n\n
![\"\"](\"https:\/\/www.keystonefinancial.com\/wp-content\/uploads\/2024\/03\/image.png\")
<\/figure>\n\n\n\nPRINTING HOUSES ON THE MOON. <\/strong>For decades,Star Trek and its many spinoffs told tales of space travel. In that fictional universe, the Starfleet explored space at the behest of an interstellar government following the rules and laws of that government.<\/p>\n\n\n\n
For many years, actual space exploration fell under the purview of governments, too. However, that has been changing. Today, space is a rapidly growing private sector endeavor. Estimates suggest the private space industry could be valued at $770 billion by 2027, reported Reuters.<\/p>\n\n\n\n
In the next decade or so, we may see:<\/p>\n\n\n\n
- \n
- Direct-to-device satellite programs<\/strong>. \u201cIntegrating satellite and terrestrial mobile networks could unlock new revenue for the satellite, semiconductor, and telecom industries,\u201d wrote David Jarvis and colleagues in Deloitte Insights. \u201c\u2026this technology does not compete with terrestrial cellular services from mobile network operators. It provides limited connectivity in areas where there is no terrestrial cellular coverage.\u201d (Extraterrestrial service is not yet available.)<\/li>\n<\/ul>\n\n\n\n
- \n
- Growth of the Low Earth Orbit (LEO) economy<\/strong>. An early area of growth in the space economy is expected to take place 99 to 1,200 miles above the Earth in what\u2019s known as LEO. According to Deloitte, \u201c\u2026the industry can be dissected into six broad market segments that encompass specific commercial activities.\u201d The segments include infrastructure, services, on-orbit research and development, on-orbit manufacturing, space tourism, and media, entertainment and advertising.<\/li>\n<\/ul>\n\n\n\n
- \n
- Habitable communities on the moon by 2040<\/strong>. \u201cIn the vast expanse of the cosmos, a visionary dream is becoming a reality: homes on the moon, an audacious endeavor spearheaded by NASA. This cosmic ambition\u2026is now hurtling towards reality, fueled by cutting-edge technology, innovation, and unyielding determination…Imagine houses emerging from the moon\u2019s surface\u2026crafted from the very rock chips and mineral fragments that define the moon’s rugged terrain. How, you may understandably ask? With 3D printers,\u201d reported Architectural Digest<\/em>.<\/li>\n<\/ul>\n\n\n\n
The growing space industry will create opportunities for investors \u2013 and for new graduates who can pursue careers related to space in the private industry, as well as within governments.<\/p>\n\n\n\n
Weekly Focus \u2013 Think About It <\/strong><\/p>\n\n\n\n
\u201cLive long and prosper.\u201d \u2014Dr. Spock, Fictional Star Trek character<\/em><\/p>\n\n\n\n
Investment advisory services offered through Keystone Financial Services, an SEC Registered Investment Advisor.\u00a0These views are those of Carson Coaching, not the presenting Representative, the Representative\u2019s Broker\/Dealer, or Registered Investment Advisor, and should not be construed as investment advice. This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named firm or broker\/dealer. Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.\u00a0 However, the value of fund shares is not guaranteed and will fluctuate. Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index. All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client\u2019s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index. The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index. The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. Gold represents the 3:00 p.m. (London time) gold price as reported by the London Bullion Market Association and is expressed in U.S. Dollars per fine troy ounce. The source for gold data is Federal Reserve Bank of St. Louis (FRED),\u00a0https:\/\/fred.stlouisfed.org\/series\/GOLDPMGBD228NLBM. The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. The Dow Jones Industrial Average (DJIA), commonly known as \u201cThe Dow,\u201d is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal. The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system. International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets. Yahoo! Finance is the source for any reference to the performance of an index between two specific periods. The risk of loss in trading commodities and futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage is often obtainable in commodity trading and can work against you as well as for you. The use of leverage can lead to large losses as well as gains. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Past performance does not guarantee future results. Investing involves risk, including loss of principal. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete. There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Asset allocation does not ensure a profit or protect against a loss. Consult your financial professional before making any investment decision. Please contact our office if you would like a list of sources used in creating this content.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"
The bull market is alive and well. \u201cWe know what investors are thinking,\u201d reported Jacob Sonenshine of Barron\u2019s. \u201cThe gains can keep coming, driven by an economy that is neither too hot nor too cold\u2026The economy is growing, but only moderately, and the Federal Reserve can keep thinking about when it can start cutting interest […]<\/p>\n","protected":false},"author":10,"featured_media":7916,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/oi_article\/7914"}],"collection":[{"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/oi_article"}],"about":[{"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/types\/oi_article"}],"author":[{"embeddable":true,"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/comments?post=7914"}],"version-history":[{"count":1,"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/oi_article\/7914\/revisions"}],"predecessor-version":[{"id":7917,"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/oi_article\/7914\/revisions\/7917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/media\/7916"}],"wp:attachment":[{"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/media?parent=7914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/categories?post=7914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.keystonefinancial.com\/wp-json\/wp\/v2\/tags?post=7914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- Habitable communities on the moon by 2040<\/strong>. \u201cIn the vast expanse of the cosmos, a visionary dream is becoming a reality: homes on the moon, an audacious endeavor spearheaded by NASA. This cosmic ambition\u2026is now hurtling towards reality, fueled by cutting-edge technology, innovation, and unyielding determination…Imagine houses emerging from the moon\u2019s surface\u2026crafted from the very rock chips and mineral fragments that define the moon’s rugged terrain. How, you may understandably ask? With 3D printers,\u201d reported Architectural Digest<\/em>.<\/li>\n<\/ul>\n\n\n\n
- Growth of the Low Earth Orbit (LEO) economy<\/strong>. An early area of growth in the space economy is expected to take place 99 to 1,200 miles above the Earth in what\u2019s known as LEO. According to Deloitte, \u201c\u2026the industry can be dissected into six broad market segments that encompass specific commercial activities.\u201d The segments include infrastructure, services, on-orbit research and development, on-orbit manufacturing, space tourism, and media, entertainment and advertising.<\/li>\n<\/ul>\n\n\n\n
- Slowing Inflation<\/strong>. Last week, one of the Fed\u2019s favorite inflation gauges, the personal consumption expenditures (PCE) price index, showed inflation moved lower year-over-year. Prices rose 2.6 percent over the 12 months through December 2023 and 2.4 percent over the 12 months through January 2024. While inflation trended lower over the longer period, it increased month-to-month. In December 2023, prices rose 0.1 percent, and in January 2024, prices rose 0.3 percent.<\/li>\n\n\n\n