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MONTHLY MARKET INSIGHTS | JUNE 2022


U.S. MARKETS

Stocks were mixed in May as a powerful rally in the final week of trading helped
recoup losses from earlier in the month.

The Dow Jones Industrial Average picked up 0.04 percent, while the Standard &
Poor’s 500 Index added 0.01 percent. The Nasdaq Composite fell 2.05 percent.1

There will come a time when you believe everything is finished; that will be the
beginning.

Louis L’Amour, American novelist and short story writer


IT’S ALL ABOUT THE FED

The month began on a solid note as stocks rallied following the Fed’s
announcement of a 50-basis-point hike in the federal funds rate. The market was
relieved to hear comments from Fed Chair Jerome Powell, who said that a
75-basis-point increase was not actively being considered.

This rally lost momentum as investors reassessed the Fed’s commitment to a
tighter monetary policy and digested some economic news that fanned inflation
fears.


FOCUS MOVING FROM INFLATION?

Over the course of the month, inflation concerns diminished slightly, relative
to economic growth worries. Consumer price inflation data showed prices rising
at a pace near 40-year highs, but markets responded well, perhaps because the
pace of price increases was down from the previous month.2

Inflation fears were further soothed later in the month when the Personal
Consumption Expenditures Price Index, the Fed’s preferred measure of inflation,
rose at a slower rate than markets had expected.3


MIXED SIGNALS ON ECONOMIC GROWTH

Economic growth concerns moved to the forefront due, in part, to weak economic
data out of China. Disappointing earnings from major U.S. retailers also
heightened fears about domestic growth. But upbeat news from several mid-size
and discount retailers suggested the American consumer remained healthy.


FED SPARKS RALLY

The May 25 release of the Federal Open Market Committee (FOMC) meeting minutes
ignited the sharp rally in stock prices.

To investors, the meeting minutes suggested that the Fed was unlikely to pursue
a more aggressive tightening stance. Investor sentiment was also lifted by
comments from Fed officials who indicated that rate hikes could take a pause
after the expected June and July hikes.


SECTOR SCORECARD

Industry sectors that managed to post gains in May included Communications
Services (+1.9 percent), Energy (+16.03 percent), Financials (+2.78 percent),
Health Care (+1.49 percent), Materials (+1.18 percent), and Utilities (+4.31
percent). The remaining sectors moved lower, with losses in Consumer
Discretionary (-5.12 percent), Consumer Staples (-4.08 percent), Industrials
(-0.46 percent), Real Estate (-5.11 percent), and Technology (-0.69 percent).4

U.S. Market Recap for May 2022

S&P 500 .01 Month (%) ‌ -13.30 Year-to-Date (%)

Nasdaq -2.05 Month (%) ‌ -22.78 Year-to-Date (%)

Russell 1000 -0.72 Month (%) ‌ -14.58 Year-to-Date (%)

10-Year Treasury 2.84 Month (%) ‌ 1.33 Year-to-Date (%)

Yahoo Finance, May 31, 2022. The market indexes discussed are unmanaged and
generally considered representative of their respective markets. Individuals
cannot directly invest in unmanaged indexes. Past performance does not guarantee
future results. U.S. Treasury Notes are guaranteed by the federal government as
to the timely payment of principal and interest. However, if you sell a Treasury
Note prior to maturity, it may be worth more or less than the original price
paid.


WHAT INVESTORS MAY BE TALKING ABOUT IN JUNE

The U.S. dollar has been strengthening against other currencies all year. The
U.S. Dollar Currency Index, which tracks the dollar’s value against a basket of
major international currencies, has risen about 8 percent since the start of the
year.5

The value of the dollar is closely watched because roughly 40 percent of the
aggregate earnings of S&P 500 companies come from overseas sales.6

A strong dollar helps U.S. shoppers buy imported products at lower prices, but
it also makes U.S. exports more expensive to overseas customers, which may show
up in second-half company results.


WORLD MARKETS

World markets trended higher as China began to emerge from its COVID-19
lockdown. The MSCI EAFE Index gained 1.45 percent in May.7

Major European markets mainly moved higher, with increases in Spain (+3.11
percent), Germany (+2.06 percent), and the U.K. (+0.84 percent). France’s CAC 40
lost 0.99 percent.8

Stocks in the Pacific Rim markets were mixed. Australia lost 3.01 percent while
Japan picked up 1.61 percent.9

World Market Recap for May 2022 Emerging Markets May (%) Year-to-Date (%) Hang
Seng (China) 1.54 -8.47 KOSPI (Korea) -0.34 -9.80 Nikkei (Japan) 1.61 -5.25
Sensex (India) -2.62 -4.61 EGX 30 (Egypt) -8.13 -15.06 Bovespa (Brazil) -10.10
2.91 IPC All-Share (Mexico) 0.65 -2.85 ASX 200 (Australia) -3.01 -3.14 Europe  
  DAX (Germany) 2.06 -9.42 CAC 40 (France) -0.99 -9.57 IBEX 35 (Spain) 3.11 1.58
FTSE 100 (United Kingdom) 0.84 3.02 IT40 (Italy) 1.04 -10.39 Yahoo Finance, May
31, 2022. The market indexes discussed are unmanaged and generally considered
representative of their respective markets. Individuals cannot directly invest
in unmanaged indexes. Past performance does not guarantee future results.
International investments carry additional risks, which include differences in
financial reporting standards, currency exchange rates, political risks unique
to a specific country, foreign taxes and regulations, and the potential for
illiquid markets. These factors may result in greater share price volatility.


INDICATORS


GROSS DOMESTIC PRODUCT (GDP)

The second estimate of the first quarter’s GDP growth was revised lower, from an
annualized -1.4 percent to -1.5 percent.10


EMPLOYMENT

Employers added 428,000 jobs in April, the 12th consecutive month of
400,000-plus job growth. The unemployment rate was unchanged at 3.6%. Average
hourly earnings rose 5.5% year-over-year, although that remains below inflation
over the same period.11


RETAIL SALES

Consumers continued to spend in April, with retail sales climbing 0.9 percent.
Since retail sales are not adjusted for inflation, it’s difficult to say how
much of this increase is attributable to higher prices versus higher demand.12


INDUSTRIAL PRODUCTION

Industrial output rose 1.1 percent in April—more than double Wall Street
estimates.13


HOUSING

Housing starts slipped 0.2 percent, although they were higher year-over-year by
14.6 percent.14

Sales of existing homes fell to their slowest pace since the start of the
COVID-19 pandemic, declining 5.9 percent from a year earlier (April 2021). Tight
inventory, rising prices, and higher mortgage rates weighed on prospective
buyers.15

New home sales slipped 16.6 percent from March 2022 levels and dropped 26.9
percent from April 2021 levels. There was a nine-month supply of new home
inventory in March 2022. A six-month supply is considered balanced between buyer
and seller.16


CONSUMER PRICE INDEX (CPI)

Prices of consumer goods rose 8.3 percent from a year ago, coming in slightly
below last month’s pace but above consensus estimates. Excluding food and energy
prices, core inflation jumped 6.2 percent.17


DURABLE GOODS ORDERS

Orders for long-lasting goods rose 0.4 percent, led by non-defense aircraft and
parts orders.18


THE FED

At its May FOMC meeting, the Federal Reserve raised interest rates by half a
percentage point. The Fed governors also announced that they would begin to
scale back the Fed’s $9 trillion balance sheet by $95 billion per month.

In a post-meeting press conference, Fed Chair Jerome Powell also said that the
FOMC was not actively considering a 75-basis-point hike, although there may be
multiple 50-basis-point hikes in the coming months.19


BY THE NUMBERS: SURF'S UP


120

The number of Beach Boys who actually surfed


2.68 MILLION21

Number of people who surfed in 2017


3422

Average surfer’s age in the U.S.


2.5 HOURS23

Amount of time, on average, spent surfing per day, per surfer


195324

The year of the first international surfing championship


$50 BILLION A YEAR25

Amount surfing contributes to the international economy


$3.1 BILLION A YEAR26

Amount of annual sales of surfboards and accessories


$64027

Initial cost to take up surfing as a hobby


1128

Number of times Kelly Slater won the world championship


45%29

Percent of surfing injuries caused by contact with a surfboard or another surfer


0.2630

Number of injuries per surfer every year

--------------------------------------------------------------------------------

 

The content is developed from sources believed to be providing accurate
information. The information in this material is not intended as tax or legal
advice. Please consult legal or tax professionals for specific information
regarding your individual situation. This material was developed and produced by
FMG Suite to provide information on a topic that may be of interest. FMG Suite,
LLC, is not affiliated with the named representative, broker-dealer, or state-
or SEC-registered investment advisory firm. The opinions expressed and material
provided are for general information and should not be considered a solicitation
for the purchase or sale of any security.

Investing involves risks, and investment decisions should be based on your own
goals, time horizon and tolerance for risk. The return and principal value of
investments will fluctuate as market conditions change. When sold, investments
may be worth more or less than their original cost.

Any companies mentioned are for illustrative purposes only. It should not be
considered a solicitation for the purchase or sale of the securities. Any
investment should be consistent with your objectives, timeframe, and risk
tolerance.

The forecasts or forward-looking statements are based on assumptions, subject to
revision without notice, and may not materialize.

The market indexes discussed are unmanaged and generally considered
representative of their respective markets. Individuals cannot directly invest
in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally
considered representative of large-capitalization companies on the U.S. stock
market. The S&P 500 Composite Index is an unmanaged group of securities
considered to be representative of the stock market in general. The Nasdaq
Composite is an index of the common stocks and similar securities listed on the
Nasdaq stock market and considered a broad indicator of the performance of
stocks of technology and growth companies. The Russell 1000 Index is an index
that measures the performance of the highest-ranking 1,000 stocks in the Russell
3000 Index, which is comprised of 3,000 of the largest U.S. stocks. The MSCI
EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves
as a benchmark for the performance in major international equity markets, as
represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia.
Index performance is not indicative of the past performance of a particular
investment. Past performance does not guarantee future results. Individuals
cannot invest directly in an index. The return and principal value of stock
prices will fluctuate as market conditions change. And shares, when sold, may be
worth more or less than their original cost.

International investments carry additional risks, which include differences in
financial reporting standards, currency exchange rates, political risks unique
to a specific country, foreign taxes and regulations, and the potential for
illiquid markets. These factors may result in greater share price volatility.

The Hang Seng Index is a benchmark index for the blue-chip stocks traded on the
Hong Kong Stock Exchange. The KOSPI is an index of all stocks traded on the
Korean Stock Exchange. The Nikkei 225 is a stock market index for the Tokyo
Stock Exchange. The SENSEX is a stock market index of 30 companies listed on the
Bombay Stock Exchange. The Jakarta Composite Index is an index of all stocks
that are traded on the Indonesia Stock Exchange. The Bovespa Index tracks 50
stocks traded on the Sao Paulo Stock, Mercantile, & Futures Exchange. The IPC
Index measures the companies listed on the Mexican Stock Exchange. The MERVAL
tracks the performance of large companies based in Argentina. The ASX 200 Index
is an index of stocks listed on the Australian Securities Exchange. The DAX is a
market index consisting of the 30 German companies trading on the Frankfurt
Stock Exchange. The CAC 40 is a benchmark for the 40 most significant companies
on the French Stock Market Exchange. The Dow Jones Russia Index measures the
performance of leading Russian Global Depositary Receipts (GDRs) that trade on
the London Stock Exchange. The FTSE 100 Index is an index of the 100 companies
with the highest market capitalization listed on the London Stock Exchange.

Please consult your financial professional for additional information.

Copyright 2022 FMG Suite.

1. WSJ.com, May 31, 2022

2. BLS.gov, May 11, 2022

3. BEA.gov, May 27, 2022

4. SectorSPDR.com, May 2022

5. CNBC.com, May 31, 2022

6. FactSet.com, May 6, 2022

7. MSCI.com, May 31, 2022

8. MSCI.com, May 31, 2022

9. MSCI.com, May 31, 2022

10. CNBC.com, May 26, 2022

11. WSJ.com, May 6, 2022

12. WSJ.com, May 17, 2022

13. MarketWatch.com, May 17, 2022

14. Finance.yahoo.com, May 18, 2022

15. CNBC.com, May 19, 2022

16. CNBC.com, May 24, 2022

17. CNBC, May 11, 2022

18. WSJ.com, May 25, 2022

19. CNBC.com, May 4, 2022

20. Surfertoday.com, 2021

21. Comfyliving.net, January 4, 2021

22. Comfyliving.net, January 4, 2021

23. Comfyliving.net, January 4, 2021

24. Comfyliving.net, January 4, 2021

25. Comfyliving.net, January 4, 2021

26. Comfyliving.net, January 4, 2021

27. Comfyliving.net, January 4, 2021

28. Comfyliving.net, January 4, 2021

29. Comfyliving.net, January 4, 2021

30. Comfyliving.net, January 4, 2021

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CONTACT

RAM Insurance & Financial Services

Office: (248) 714-5102

Fax: (248) 714-5106

141 North Milford Road

Suite 101

Highland, MI 48357

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The content is developed from sources believed to be providing accurate
information. The information in this material is not intended as tax or legal
advice. Please consult legal or tax professionals for specific information
regarding your individual situation. Some of this material was developed and
produced by FMG Suite to provide information on a topic that may be of interest.
FMG Suite is not affiliated with the named representative, broker - dealer,
state - or SEC - registered investment advisory firm. The opinions expressed and
material provided are for general information, and should not be considered a
solicitation for the purchase or sale of any security.

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the California Consumer Privacy Act (CCPA) suggests the following link as an
extra measure to safeguard your data: Do not sell my personal information.

Copyright 2022 FMG Suite.



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Investment Advisor, and securities are offered through Calton & Associates, Inc.
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