Weekend Update 5/15/2022

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

Soft or hard economic landing has investors debating

💸  Stabilizing, but still high. New CPI data with April inflation rising +8.3% Y/Y. First monthly decline in 8 months, but still extremely elevated. Readout likely not changing Fed’s aggressive #RisingYields plan yet. Markets continue sharp slide with S&P 500 down -5% through Thursday.

🛬  Hard or soft landing? Bearish sentiment continues to dominate as investors debate whether Fed #RisingYields plan can softly land economy. Fed Chair Powell noted economic reaction may not go as smoothly as it would like. Markets rallied Friday viewing comments signaling Fed may adjust course if #InflationFears action becomes too severe. Market bounce on Friday with S&P 500 rebounding to end down -2% for week.

💻  Tech Bubble Burst 2.0? Tech companies beginning to tighten their belts with reports of hiring freezes, marketing spend pullbacks and cost cutting including some layoffs. While Tech has enjoyed an unprecedented run since recovering from the dot com bubble burst, the party may be coming to an end. Tech down -22% YTD while adjacent Communications down -24%.

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.