GARDNER BROWN ASSOCIATES, INC.
BIO
Louis A. Gardner, President of Gardner Brown Associates Inc., has been in the Financial Services industry for over 30 years. Over the span of his career he has served as an Executive with three major insurance carriers.
Gardner Brown & Associates, Inc was started in 2008 with the objective to allow our firm to work directly with individual and corporate clients in the vast area of financial advisement.
Louis has been named one of the nation's Best Advisors by Medical Economics due to his vast knowledge and expertise in the area of financial advisement. Gardner Brown Associates is able to assist corporate clients in devising executive, core and voluntary benefits and individual clients in all areas of financial matters.
From tackling personal decisions to reaching important milestones, Gardner Brown Associates, Inc. guides you on the path to financial success. As a professional financial planning firm, Gardner Brown Associates, Inc. guarantees optimal results based on your specific needs. We are fueled by our commitment to excellence and go the extra mile to make sure our clients are fully satisfied with the services provided. Get in touch with us today for a free financial advisement consultation.
Securities offered through Lion Street Financial, LLC, member FINRA, SIPC. Investment advisory products and services offered through Lion Street Advisors, LLC, an investment advisor registered with the SEC. Lion Street Financial, LLC and Lion Street Advisors, LLC are affiliated companies but neither is affiliated with Gardner Brown Associates, Inc. Neither of these companies provide tax or legal advice. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed.
Check the background of this investment professional on FINRA's BrokerCheck.
WHAT GARDNER BROWN ASSOCIATES, INC. OFFERS
FINANCIAL STATUS EVALUATION
Our clients are our number one priority, and we go the extra mile to make sure they’re completely satisfied with our service. Whether individual or corporate clients, we will review current insurance and investment holdings and provide explanations of current holdings in a manner which is understandable.
FINANCIAL ADVISEMENT RECOMMENDATIONS
Gardner Brown Associates, Inc. aims to collect, analyze, and solve your financial advisement needs. After we collect your current holdings data and analyze your information we are able to present customized solutions to assist you in reaching your financial goals.
ASSIST IN FINANCIAL GOAL SETTING
Many clients know what they want to achieve in 5, 10 or 20 years financially but they are not sure how to get there. At Gardner Brown Associates, Inc. we listen to your financial wants and needs and help develop a specific plan on how to achieve those goals.
BUSINESS HOURS
Mon - Fri: 7am - 6pm (PST)
Saturday & Sunday: By appointment only
MONTHLY ECONOMIC UPDATE
NOVEMBER 2022
THE MONTH IN BRIEF
Stocks posted big gains in October, propelled by better-than-expected corporate reports.
The Dow Jones Industrial Average led, gaining 13.95 percent. The Standard & Poor’s 500 Index tacked on 7.99 percent, while the Nasdaq Composite added 3.90 percent.1
LAST MONTH
US Markets
Stocks posted big gains in October, propelled by better-than-expected corporate reports.
The Dow Jones Industrial Average led, gaining 13.95 percent. The Standard & Poor’s 500 Index tacked on 7.99 percent, while the Nasdaq Composite added 3.90 percent.1
A Volatile Few Weeks
October opened with a powerful two-day rally, but the momentum faded. News that Britain’s prime minister had reversed her tax cut proposal helped spark the rally, but the gains were erased on renewed fears of higher interest rates and possible recession.2
Market volatility accelerated when a higher-than-expected consumer inflation number sent stocks tumbling in early trading before inexplicably staging a massive reversal that saw the Dow Industrial rally 1,500 points from its intraday low.3
Earnings Spark Rally
As earnings season opened mid-month, investors put aside worries about Fed policy and recession to focus on how companies fared in the third quarter.
By the end of October, 263 companies in the S&P 500 index had reported earnings, and 73.4 percent had topped Wall Street analysts’ estimates – above the 66 percent long-term average. Sales rose by 10.3 percent, but much of that gain was attributed to the effects of inflation.4
Mega-Cap Tech Blues
Several mega-cap technology names checked in with disappointing earnings for the quarter and provided weak guidance for the months ahead. The news surprised some investors and resulted in lower stock prices.
Old Economy Names Sparkle
While the mega-caps struggled with declining advertising, poor expense management, and a deceleration in cloud-computing growth, some "old economy" names checked in with quarterly numbers that were above expectations. For instance, in the industrials industry group sector, 83 percent of companies reported earnings above expectations compared with the 73.4 percent average.5
This divergence in third-quarter earnings between mega-cap tech and old economy names contributed to the wide dispersion in performance between the Dow Industrials and Nasdaq Composite this month.
Sector Scorecard
All industry sectors notched gains in October, with gains in Communications Services (+0.67 percent), Consumer Discretionary (+1.11 percent), Consumer Staples (+9.01 percent), Energy (+24.97 percent), Financials (+11.92 percent), Health Care (+9.61 percent), Industrials (+13.89 percent), Materials (+8.93 percent), Real Estate (+2.00 percent), Technology (+7.85 percent), and Utilities (+1.94 percent).6
What Investors May Be Talking About in November
November will be a busy month for investors. First, the market will be digesting another Fed change to interest rates and the outcome of the midterm elections. Investors will also be getting updates on inflation and the labor market.
The Consumer Price Index is set for release on November 10th, and investors will be anxious to see if inflation is moderating. The Producer Price Index will be released on November 15th, providing insights into the cost pressures producers of goods and services face.
In addition, investors' attention is expected to be focused on monthly employment reports and the weekly initial jobless claims. Trends in the job markets and wage growth will play a role in the Fed’s future decisions about interest rates.
WORLD MARKETS
World Markets
Overseas markets rebounded in October, as political uncertainty in the UK started to get resolved and energy security in Europe improved. For the month, the MSCI EAFE Index picked up 5.26 percent.7
In Europe, Italy rose 9.7 percent, and Germany gained 9.41 percent. Elsewhere, France tacked on 8.75 percent, and Spain advanced 8.0 percent. The UK lagged, adding less than 3 percent.8
Pacific Rim markets were mixed. Hong Kong dropped 14.72 percent due to investor concerns following the meeting of China’s Communist Party. Meanwhile, Japan rallied 6.36 percent, and Australia advanced 6.01 percent. Mexico's market advance also caught the eye, picking up nearly 12 percent.9
Indicators
Gross Domestic Product (GDP)
The initial estimate of third-quarter GDP growth came in at an annualized rate of 2.6 percent, exceeding economists’ consensus of a 2.3 percent estimate.10
Employment
Employers added 263,000 jobs in September as the unemployment rate fell to 3.5 percent. Wage growth of 5 percent in September was below August’s gain of 5.2 percent. Labor force participation rate slipped to 62.3 percent.11
Retail Sales
Consumer spending was flat in September compared to August, but spending was 8.2 percent higher than a year ago.12
Industrial Production
Industrial production rose 0.4 percent in September, while capacity utilization increased to 80.3. Capacity utilization was 0.7 percent above its long-term average.13
Housing
Housing starts dropped 8.1 percent in September as higher mortgage rates tempered demand for new homes.14
September’s existing home sales slipped 1.5 percent month-over-month while falling 23.8 percent year-over-year. It was the eighth consecutive month that sales declined.15
New home sales fell 10.9 percent while posting a 17.6 percent decline from a year ago. The median sales price rose, though it remains below the record high of July.16
Consumer Price Index (CPI)
Prices increased 0.4 percent in September. The year-over-year increase was 8.2 percent. Core inflation (excluding energy and food) rose 0.6 percent in September and was higher by 6.6 percent from a year ago. The annual gain in core prices was the highest in 40 years.17
Durable Goods Orders
Orders for long-lasting goods rose 0.4 percent. Civilian aircraft orders led to the sixth-monthly increase in durable goods orders in the last seven months.18
The Fed
Minutes from September’s Federal Open Market Committee (FOMC) meeting reflected members’ concern over persistently high inflation.19
The FOMC members agreed that additional rate hikes would keep inflation from becoming embedded into the economic landscape and help prevent greater economic pain in the long run. Several members also expressed worries that overdoing such rate increases might raise the risk of economic and financial market volatility.19
MONTHLY QUOTE
"Your time is limited, so don't waste it living someone else's life."
Steve Jobs, American entrepreneur and co-founder of Apple