Weekly Market Review June 14, 2023

After another positive week in the stock market the S&P 500 Index has entered a new bull market, rallying 20% from its mid-October lows. The rally has been driven by the mega-cap tech rebound which has benefited from the enthusiasm surrounding artificial intelligence (AI), combined with a resilient economy defined by a labor force that has defied expectations. (Source: The Wall Street Journal)

However, not all bull market rallies are created equal. The current eight-month rally in the S&P 500 would mark the second-weakest start to an upcycle over the last century. For context, the S&P 500 has gained 38% on average during the first eight months of a new bull market. This would also be the only bull market since 1980 that large-cap stocks have outperformed small-cap stocks. (Source: Edward Jones)

On the political front, the legal battles continue for former President Donald Trump as he was indicted on federal charges last week. The indictment includes 37 counts related to sensitive documents recovered at his Mar-a-Lago residence in Florida. The charges mark the first time in U.S. history a former president has faced federal charges. (Source: CBS News)

This week starts with May inflation data via the Consumer Price Index (CPI) report on Tuesday and Producer Price Index (PPI) report on Wednesday. The spotlight shifts to the Federal Reserve with an FOMC interest rate decision on Wednesday. Later in the week we check in on the consumer with May retail sales on Thursday and the University of Michigan Consumer Sentiment Index on Friday.

Blueprint Numbers

NEW BULL, NEW EXPECTATIONS - Research from Bank of America shows that the S&P 500 rises 92% of the time over a 12 month period following the start of a bull market, compared to the historical 75% average over any 12 month period dating back to the 1950s. (Source: Yahoo! Finance)

SEC CRYPTO CRACKDOWN - Binance, the largest global crypto trading platform, and Coinbase, the largest U.S. crypto trading platform, were sued by the SEC last week. The charges include offering unregistered securities on their platforms and operating as an unregistered exchange, broker, and clearinghouse. (Source: The Wall Street Journal)

HANDING OVER THE REIGNS - George Soros, the legendary investor and philanthropist, is handing over control of his $25 billion philanthropic enterprise to his 37-year-old son, Alexander Soros. The Soros family operates a nonprofit and super PAC that contribute to mostly liberal causes and political campaigns. (Source: The Wall Street Journal)

BABY BOOMER RETIREMENT - On average, 10,000 Baby Boomers reach retirement age each day. With rising inflation, some are considering re-entering the workforce in some capacity. According to Paychex, 1 in 6 retirees is considering returning to work due to financial needs. (Source: USA Today)