September 16, 2022
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1. Michael Landsberg, the chief investment officer at Landsberg Bennett Private Wealth Management, has interpreted FedEx Corp.’s profit warning as a sign of a slowing economy. He expects a “hard landing” for the U.S. economy as the Federal Reserve continues to tighten its monetary policy. Landsberg advises against buying the equity dip in the U.S. or in Europe.
2. Landsberg also suggests that investors should worry about a recession and position themselves accordingly. He favors the healthcare, utilities, and consumer staples sectors in the U.S., as well as discount retailers like Dollar General Corp.
3. Landsberg believes that fear levels in the market are starting to elevate but are still not at a point where he would consider them to be excessive.
4. Other market experts, such as Alessio de Longis, senior portfolio manager at Invesco, believe that the stock market has further to fall, as “equity markets are not priced for a recession,” and he expects a recession in the next 12 months as the Fed aggressively hikes rates to bring down inflation.
5. U.S. stocks ended lower on Friday, booking significant weekly losses after a profit warning from FedEx Corp. caused concerns among investors. This has been interpreted as a sign of a slowing economy.
6. The Dow Jones Industrial Average fell 139.4 points, or 0.5%, to close at 30,822.42, the S&P 500 dropped 28.02 points, or 0.7%, to finish at 3,873.33, and the Nasdaq Composite shed 103.95 points, or 0.9%, to end at 11,448.40. For the week, the Dow fell 4.1%, while the S&P 500 dropped 4.8% and the Nasdaq Composite tumbled 5.5%. These are the biggest weekly percentage drops for the S&P 500 and Nasdaq since June, and the Dow had its worst week since the stretch ending Aug. 26.
Landsberg Bennett is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.
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