Motivence markets - July 29th 2022

Motivence Economic Sentiment Meter: We are "ok" but let's proceed with caution

• Inflation and general negative growth isn't something where we are raving and running around euphorically about. But folks still have jobs, on the consensus. Generally speaking, this time does require personal finances to face some austerity, as it is more conducive to a savings environment. It's not all daisies and roses, but we are not to panic yet.​​​

Federal Reserve Bank of Atlanta President Raphael Bostic says we are not in a recession but the Fed has to do more with inflation:

• “I don’t think the country is in a recession,” he said Friday in an interview on National Public Radio, though he said it was clear that a lot of people were hurting in the current conditions. “Because of that we really need to address the high levels of inflation and get this economy back into a more stable and sustainable situation.”​​

Inflation continues to increase as monthly consumer spending is only slightly higher:

• The personal consumption expenditures price index, rose 1% from a month earlier and was up 6.8% since June 2021. As per many reports, this is one of the largest increases in the last 40 years.​​​​

There is still a big airline deal at play: 

• $3.8 billion Jet Blue and Spirit Airline merger still faces antitrust reviews that analysts say could lead to deal structure changes, and approval timelines.​​

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

• One - 1.8%
• Two - 7.4%
• Three - 4.4%
• Four - 6.5%