Markets with Megan: A Two-Minute Financial Markets Update

Discover the economic ripples that follow when core inflation metrics stubbornly defy expectations. Megan Horneman, Chief Investment Officer at Verdence Capital Advisors, critically analyzes the latest persistently high core PCE inflation reading, revealing a challenging landscape for the Federal Reserve and the broader economy. With a 2.8% increase clashing with anticipated figures and personal spending outstripping income growth, Megan dissects the precarious balance between consumer behavior and the potential for future interest rate hikes.
With the savings rate slipping to a disquieting 3.2%, Megan discusses the impact of elevated energy prices on inflation and market volatility. As spending trends towards non-durable goods, we consider the implications for fiscal policy and the stock market's tepid response. Join us as we unpack the complexities of economic indicators with Megan's guidance and prepare for our next episode, where we discuss the effects of the upcoming quarterly treasury refunding announcement.
https://youtu.be/SMb2NV2BAqs

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

Discover the underlying factors that turned the stock market on its head with Megan Horneman, Chief Investment Officer for Verdence Capital Advisors, as she analyzes the latest GDP report in our segment, Markets with Megan. The forecasted economic growth of 2.5% fell short at 1.6%, and Megan dissects the contributing factors, from a significant contraction in net exports to a slowdown in inventory changes. The report's impact didn't stop at disappointing numbers; it sent investors into a frenzy, spiraling into a sell-off and escalating bond yields. Inflation rates rose to a troubling 3.7%, signaling that the Fed's next moves could lean towards hikes rather than anticipated rate cuts.
As Megan navigates the complexities of this economic data, she sheds light on the shift from goods to service-based spending and the potential for a persistently high inflation environment. The pressure is mounting in financial services and insurance, where the Fed's control is limited yet directly impacts consumers. With long-term bond yields reaching 4.75% and speculation about delaying Fed fund rate cuts, the market's optimism from the previous quarter seems to have hit a wall.
https://youtu.be/qm2-wShwAOQ

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

Megan discusses what's shaking consumer confidence and how it could influence your next financial move as she unpacks the latest University of Michigan Consumer Confidence Report. She breaks down the numbers and the underlying sentiments that signal where the economy might be heading. Megan doesn't hold back in explaining why these figures are more than just statistics—they're a crystal ball that the Federal Reserve and investors alike are watching intently.
With a dip in the equity markets this week, Megan points to disappointing corporate earnings and escalating geopolitical tensions. There are elements intertwined with consumer expectations that, to Megan, forecast potential shifts in spending behavior and could add fuel inflation. This episode is essential listening for anyone looking to stay informed on the latest economic data and the economic indicators that matter most.
https://youtu.be/40PX5PCucPAhttps://youtu.be/40PX5PCucPA

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

Join Megan Horneman, Chief Investment Officer at Verdence Capital Advisors, as she breaks down the latest Federal Reserve meeting held on March 20th. Despite keeping interest rates unchanged, Federal Reserve Chair Jerome Powell's remarks leaned heavily towards the bullish side, reassuring investors. Powell's dovish stance, highlighted in both the press conference and Fed statement, hinted at a potential peak in rates and downplayed recent inflation concerns, fueling optimism in the market. While the Fed expects three interest rate cuts this year, one committee member suggests four, reflecting a shift towards a more positive economic outlook with upgraded GDP and inflation projections. Despite some lingering inflation worries, the Fed remains committed to its 2% inflation target, reassuring markets and sparking a strong rally. Stay tuned for further economic updates and don't hesitate to reach out to podcast at Verdence dot com with any questions or comments.
https://youtu.be/E4sPQdetZ_0

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

In this episode of "Markets with Megan," the focus is on the significant role tech giants are playing in the current bull market, with the S&P 500 surging nearly 70% since October 2022. A striking 96% of the total returns come from just five companies—NVIDIA, Meta, Broadcom, Microsoft, and Apple—demonstrating the uneven growth across market sectors.
The driving forces behind this bull market are price-to-earnings (PE) expansion, which accounts for 75% of returns rather than actual earnings growth. This heavy reliance on PE expansion raises questions about the sustainability of this two-year bull run as it approaches its third year, when returns tend to slow historically.

Megan also addresses challenges that could impact future market performance, such as the Federal Reserve's tightening monetary policy, the upcoming presidential election, and geopolitical tensions. With economic forecasts predicting slower growth as we move into 2025, investors face a more complex outlook.
Stay informed and adaptable. Subscribe and share.

https://youtu.be/xuJydAqKYaw

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...