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It is quite unbelievable that we are already into the second quarter of the year! In Q1, after last year’s volatility, we experienced a much-needed breather in the markets. That being said, we feel that there are still many more curves to navigate going forward.
The headlines over the past few weeks have focused heavily on the regional bank failures of Silicon Valley Bank and Signature Bank along with the Fed’s most recent 25 basis-point rate hike. During the March 22nd Federal Reserve meeting, the Fed chairman, Jerome Powell, mentioned that he had confidence in the stability of the regional/midsize banks and reaffirmed his commitment to bringing inflation down to a 2% level. There was a slight change in his previous tone, however, as he mentioned that rate hikes could be paused to see if “policy firming” could achieve the same thing as another rate hike…or two.
At the end of the day, more than just rate hikes are needed to quell inflation. Last month, the Purus Investment Committee attended an economic forum hosted by one of our partners, First Trust. The Chief Economist for First Trust, Brian Wesbury, referred to the economic stimulus pumped into the economy during COVID as “a large animal swallowed by a snake.” He said, “It will take time, not just rate hikes, for our economy to absorb all that excess cash. Until that happens, no matter what the Fed does, inflation will remain higher than the Fed's 2% goal.”
T. Rowe Price
"Heightened liquidity constraints and disruption require deft investing touch."
Capital Group
We are always looking for a good book to enjoy in those quiet moments. Our partners at Capital Group recently shared a list of 10 titles taken from the bookshelves of their portfolio managers, analysts and economists. Hope you find one to dive into!
“Invest in Our Planet”
For Earth Day 2023, we need to act (boldly), innovate (broadly), and implement (equitably). Businesses, governments, and citizens — everyone accounted for, and everyone accountable. A partnership for the planet.
The Purus team will be joining a beach clean-up day in partnership with Banning Ranch Conservancy on Earth Day in Newport Beach. If you would like to participate with us, please let us know at info@puruswm.com and we will send you the details.
enjoyorangecounty.com
“Southern California is one of the best places to see wildflowers, with green rolling hillsides and beautiful nature preserves from the desert to the coast. Every Spring, you can see a variety of wildflowers including poppies, lupine, lilies, bush sunflowers, sage, monkey flower and more. Keep an eye out for those lovely patches of orange – that’s our state flower, the California Poppy.
Blooms vary from season to season and are typically the best after a wet winter. The best time to see wildflowers is from mid-February to the end of May. Ready to get out and see some of those magical flower fields? Here are some of the best places to see wildflowers in Orange County and beyond.”
When viewing wildflowers, please stay on the trails!
Hannah Morreale, Operations Specialist & Digital Concierge
If you have any questions about this month’s topic, reach out to our cyber security team.