Broker Check

Advisor Analysis

| December 14, 2022

Advisor Analysis

Monthly Observations from CIO, Chris Zaccarelli
December 1, 2022

Markets in Review

Markets continued rising in November, but at a smaller pace than in October, as the S&P 500 rose 5.4% during
the month, for a year-to-date return of -14.4%. The MSCI All Country World index also rose, up 7.6% in
November, reducing its full year losses to -16.4%. Bonds also gained, with the Bloomberg BarCap U.S.
Aggregate Bond index adding 3.7% during the month, which reduced its full year losses to -12.6%.
November’s gains built on a strong October, with a lower-than-expected consumer price index (CPI) report
giving markets a boost. The CPI report is the main inflation report that most people watch and the belief is that
slowing inflation data will allow the Federal Reserve to reduce the pace of their interest rate hikes.

Monthly Highlights

  • Stock fell the most on a “Fed Day” in almost two years
  • A rocket fell in Poland, a NATO ally, but it didn’t appear to be fired by Russia
  • A smaller than expected CPI report kicked off a rally in stocks

News in Review

Below are some stories that caught our eye this past month. To learn more, follow the links to the full article.

S&P Suffers Worst 'Fed Day' Since January 2021

The S&P 500 suffered its worst drop on a Fed decision day in almost 2 years, dropping 2.5% after Federal Reserve
Chairman Powell said that the Fed still has “some ways to go” in raising interest rates. Prior to his comments, the
stock market had risen, but it gave back all of its gains and more after the chairman talked tough on interest

Biden Says Unlikely Rocket That Hit Poland was Fired from Russia

A missile fell in NATO ally Poland’s territory and killed two people, briefly setting off alarms that NATO – and the
US – would be drawn into Russia’s war with Ukraine. Initial assessments were that the debris that fell in Poland
was a result of Ukrainian self-defense missiles that were fired against incoming Russian missile attacks. Western
leaders joined together in condemning Russian actions in the first place, which caused this tragedy.

US Inflation Shows Signs of Easing - Fed Could Go Slower

An important economic report, the Consumer Price Index (CPI) was released on November 13th and it showed
that inflation was beginning to slow down its pace. The report on October prices showed a 7.7% annualized
increase, which was less than the 8.2% annualized gain which was expected, and that caused traders to buy
stocks on the hopes that the Fed would be able to reduce the speed at which they were hiking interest rates and
ultimately be able to stop raising rates more quickly than previously feared.

Apple Founder's Sandals Sell for Surprising Sum

Deceased Apple Computer founder Steve Jobs was notorious for wearing Birkenstock sandals in the 1970’s and
80’s, but little could he know that someone would pay over $200,000 for them, years after his death. The most
surprising thing is that they sold for 100 times more than what someone paid for them just 6 years ago.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance, a registered investment advisor. Independent Advisor Alliance and Blackbridge Financial are separate entities from LPL Financial. The opinions expressed in this material do not necessarily reflect the views of LPL Financial. This newsletter was written and produced by the Independent Advisor Alliance, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX: The Standard & Poor's 500 Index is an unmanaged, capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. NASDAQ 100 INDEX: The Nasdaq 100 Index is an unmanaged, capitalization-weighted index of the largest 100 nonfinancial stocks traded on the Nasdaq market. Unlike the S&P 500 it does not represent all major industries and may be more volatile than more broadly constructed indices. MSCI ACWI INDEX: The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 24 emerging markets (EM) countries. With 2,495 constituents, the index covers approximately 85% of the global investable equity opportunity set. Bloomberg U.S. Aggregate Bond Index: The Bloomberg U.S. Aggregate Bond Index is a broad-based index of the U.S. investment-grade, fixed-rate bond market, including both government-related and corporate securities and mortgagebacked and asset-backed securities. Please note this newsletter contains hyperlinks to additional content. The information being provided is strictly as a courtesy. We make no representation as to the completeness or accuracy of information provided by these websites