Market Update: May 2018

investment advisory services historical yield and indic rates May 2018  

Fed Prepared for Inflation Over 2% Target

Growth in Personal Consumption Expenditures (PCE) is the Federal Reserve’s preferred measure of inflation. PCE rose 2.0% in March, which was the first time in more than a year that it was on target. Excluding food and energy costs, prices rose 0.2% in March from February and were up 1.9% for the year. Several factors are pointing to a sustained increase in inflation including low unemployment, tax cuts and rising raw material costs. Investors will be closely scrutinizing the Fed’s statement following its May meeting. In 2018, several Fed members have spoken about a “symmetric” inflation target, which indicates that 2% is not a ceiling but rather a central inflation target.

Source: Wall Street JournalFinancial Times

Are Tax-Cuts Impacting Growth?

Gross Domestic Product expanded at an annual rate of 2.3% in the first quarter. The pace beat economist survey estimates, but was somewhat lower than recent quarters as consumer spending grew at the slowest pace in nearly five years. Meanwhile, businesses maintained robust spending including nonresidential fixed investment, which grew at a 6.1% rate. The Federal Reserve expects growth to accelerate later this year and for GDP to grow by 2.7% in 2018. Businesses have posted strong first quarter sales and earnings growth in their first results after the tax cuts signed into law in December. Profits are growing fastest at companies in the energy, technology, financial and industrial sectors.

Source: Wall Street Journal

Download Full PDF


DISCLAIMER -This document was prepared by Prudent Man Advisors, Inc. for clients of the firm and its affiliated PMA entities, as defined below. It is being provided for informational and/or educational purposes only without regard to any particular user’s investment objectives, financial situation or means. The content of this document is not to be construed as a recommendation, solicitation or offer to buy or sell any security, financial product or instrument, or to participate in any particular trading strategy in any jurisdiction in which such an offer or solicitation, or trading strategy would be illegal. Nor does it constitute any legal, tax, accounting or investment advice of services regarding the suitability or profitability of any security or investment. Although the information contained in this document has been obtained from third-party sources believed to be reliable, PMA cannot guarantee the accuracy or completeness of such information. It is understood that PMA is not responsible for any errors or omissions in the content in this document and the information is being provided to you on an “as is” basis without warranties or representations of any kind.

Securities, public finance services and institutional brokerage services are offered through PMA Securities, Inc. PMA Securities, Inc. is a broker-dealer and municipal advisor registered with the SEC and MSRB, and is a member of FINRA and SIPC. Prudent Man Advisors, Inc., an SEC registered investment adviser, provides investment advisory services to local government investment pools and separate accounts. All other products and services are provided by PMA Financial Network, Inc. PMA Financial Network, Inc., PMA Securities, Inc. and Prudent Man Advisors (collectively “PMA”) are under common ownership.

Securities and public finance services offered through PMA Securities, Inc. are available in CA, CO, FL, GA, IL, IN, IA, KS, MI , MN , MO , NE, OH, OK, PA, SD, TX and WI. This document is not an offer of services available in any state other than those listed above, has been prepared for informational and educational purposes and does not constitute a solicitation to purchase or sell securities, which may be done only after client suitability is reviewed and determined. All investments mentioned herein may have varying levels of risk, and may not be suitable for every investor. PMA and its employees do not offer tax or legal advice. Individuals and organizations should consult with their own tax and/or legal advisors before making any tax or legal related investment decisions. Additional information is available upon request.


P  :  800.783.4273       E  :  INFO@PMANETWORK.COM       A  :  2135 CityGate Ln, 7th Floor, Naperville, IL 60563   -    © 2015, PMA Financial Network, Inc. 

chicagoland website design and development, website hosting illinois, cms web design chicago Website by: Andromeda Technology Solutions

Message: You will now be redirected to a third-party, PMA-partnered website. Select CONTINUE to confirm that you want to leave and view our current employment opportunities. Select CANCEL to remain on this page.