By Peter Wechsler
President & Co-Founder, Franklin Retirement Solutions
[email protected]
First, hoping those who celebrate Passover had meaningful Seders Wednesday night and last night. For those celebrating Easter, hope you enjoy time with family and friends. And for those who enjoy warmer weather, hope you enjoyed Tuesday and Wednesday with another warm day tomorrow. In case you’re wondering, no sweater vest for me this week, but looks like I’ll need it again starting on Monday. Oh well…
You know I’m going to talk about all the craziness with the war, the markets and energy prices, but first, a little bit about our company trip. Twenty-six of us boarded a plane to Jamaica last Thursday, arriving back Monday evening. As you can see below, a fun time was had by all, and it’s always a great team-building event. What could be bad? Thanks to John and Austin for holding down the fort while we were away.
Now let’s talk turkey…or markets. With all the major averages having a terrible March, and with all 3 indexes down year-to-date, let’s hope the war ends soon. According to news on Wednesday, Iran was asking for a ceasefire. The oil markets have seen a barrel of oil drop in price this week, hoping the Strait of Hormuz will soon reopen. Let’s hope.
With regular gas at the Wawa near the office at $4.19 a gallon on Wednesday, many consumers are feeling the pinch. If the war continues, expect to see energy prices continue to climb as well as interest rates, choking off the housing market again. PECO is asking the regulators to let it increase prices for gas and oil by 10% to 15% while food prices continue to climb.
Wall Street loves to climb a wall of worry and there’s plenty to worry about right now. Another major concern, not war related, is employment prospects with AI possibly set to reduce the workforce at many employers, while tech companies are trying to figure out how to deal with AI. Major concerns for market watchers and the Fed.
I’ll try to end on a potentially positive note: quarterly earnings. With the first quarter behind us, companies will start releasing earnings reports in the next 10 days. Ultimately the stock market and the economy are driven by corporate profits. Let’s hope the numbers look good.
Again, wishing those who celebrate a beautiful Passover and Easter…
Peter