As with most things in life, the answer is typically not black or white, but usually some shade of gray. We have written extensively over the past few months of the conundrum in the marketplace given that so much of the data remains contradictory.
There are many reasons to be concerned about recessionary pressures, including an aggressive Fed that is increasing overnight rates, which effectively increases the cost of money and therefore reduces demand for economic activity. However, we continue to see a resilient consumer, strong corporate balance sheets, and an employment environment that exudes strength. Moreover, the markets are a forward-looking discount mechanism. This begs the question of what is already priced into the equation. We dive into this and more in our latest market update.
Michael Zaremsky is the Head of U.S. Private Banking at Valley Bank. You can reach him at 212-407-4372 or by email at firstname.lastname@example.org
Valley Financial Management, Inc. (“VFM”) is a wholly-owned subsidiary of Valley National Bank (“Valley Bank”), chartered as a national banking association. Valley Bank, in turn, is a wholly-owned subsidiary of Valley National Bancorp, a publicly traded company. Banking products and services are provided through Valley Bank. Brokerage products and services are provided by VFM. Pershing LLC is the clearing br oker for VFM. VFM is a member of FINRA (www.finra.org) and SIPC (www.sipc.org).
This letter is not intended to be a recommendation or investment advice and is not an offer to buy or sell securities. The information provided does not take into account the specific objectives or circumstances of any client investor, or suggest any specific course of action. You should make investment decisions based on your objectives and circumstances and in consultation with your advisors.
Non-deposit investment products offered through Valley Bank and VFM are:
* Not insured by the FDIC or any other federal or government entity
* Not guaranteed by Valley Bank or any other bank
* Subject to investment risks, including possible loss of the principal amount invested
The information contained in this material has not been filed with, reviewed by, or approved by any regulatory or self-regulatory authority and recipients are advised to consult with their own independent advisors, including tax advisors, regarding a potential investment. This is not a product of the Research Department of Valley Bank or any Valley National Bancorp unit. Opinions expressed may differ from those of other Valley divisions. VFM has developed policies designed to manage conflicts of interests.
This Newsletter includes information that has been obtained from third party sources believed to be reliable but is not guaranteed. We make no representation on the accuracy of the information
This Newsletter is provided to clients of Valley Bank and VFM only for your personal, noncommercial use. Except as expressly authorized by us, you may not copy, reproduce, transmit, sell, display, distribute, publish, broadcast, circulate, modify, disseminate or commercially exploit the information contained in this report, in printed, electronic or any other form, in any manner, without our prior express written consent.