MOTIVENCE MARKETS - August 4TH 2022

Motivence Economic Sentiment Meter: Things aren't perfect, but we don't need to panic

• Working through what we think is an awkward recessionary time in our economy, we believe it is important to continue focus on fundamentals, look at the job market reports, and continue to search for highly profitable companies in the market (still a focus on profit over growth)​​​

Pacific Pacifists? :

• ​A mix of China firing missiles into the sea as military exercises around Taiwan, a cancellation of a face-to-face meeting with Japan's FM shows well that things are as cool as it was. 

Rising Rates Across the Pond:

• Bank of England to have a sixth increase since December; U.K. central bank to raise borrowing costs by 50 basis points, from 1.25% to 1.75% - to their highest level since the financial crisis.​​​

Big Walmart is cutting jobs - what does this have in store in to future labor data?

• The firm is laying off hundreds of corporate employees, and other big boxes like Target have adjusted their outlook downwards. It is important to focus on where consumer spending and focus continue to come from in the next reporting cycles.​

As of the last market close for the S&P 500 (by Week/s trailing):

• One - 195 bps
• Two - 383 bps
• Three - 954 bps
• Four - 772 bps