The Week on Wall Street
With the Fed embarking on a new course of monetary tightening amid continued fighting in Ukraine, stocks staged a powerful, broad-based rally last week.
The Dow Jones Industrial Average jumped 5.49%, while the S&P 500 gained 6.16%. The Nasdaq Composite index soared 8.18% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 5.17%.
FACT OF THE WEEK
On March 7, 2010, Kathryn Bigelow becomes the first woman to win an Academy Award for best director, for her movie “The Hurt Locker,” about an American bomb squad that disables explosives in Iraq in 2004. Prior to Bigelow, only three women had been nominated for a best director Oscar: Lina Wertmueller for 1975’s “Seven Beauties,” Jane Campion for 1993’s “The Piano” and Sofia Coppola for 2003’s “Lost in Translation.”
At the 82nd Academy Awards in March 2010, Bigelow’s fellow best-director nominees included James Cameron, whom she was married to from 1989 to 1991, along with Lee Daniels, Jason Reitman, and Quentin Tarantino. After making history by winning the directing prize, Bigelow said, “I hope I’m the first of many [women], and of course, I’d love to just think of myself as a filmmaker. And I long for the day when that modifier can be a moot point.” Her movie “The Hurt Locker,” which starred Jeremy Renner, Anthony Mackie and Brian Geraghty, also won Oscars for best picture, film editing, sound editing, sound mixing and original screenplay.
MARKET MINUTE
Stocks Roar
After surrendering gains on Monday, stocks surged higher for four consecutive days. The rally was propelled by strong economic data, the outcome of last week’s Federal Open Market Committee (FOMC) meeting, and reports that Russia made interest payments on its sovereign debt, avoiding technical default.
The uptrend began with a drop in oil prices and a lighter-than-expected wholesale inflation report. Stock prices initially buckled following Wednesday’s hawkish FOMC announcement, but turned higher as investors interpreted the Fed’s news as a welcome plan to combat inflation. Stocks extended their gains into the final two trading sessions, cementing their best weekly performance since November 2020.
The Fed’s Plan
For the first time since 2018, the Federal Reserve hiked the federal funds rate, increasing it by 0.25% and signaling that it expected to raise rates at a faster pace than originally outlined in December. Based on its projections of future fed fund rates, the Fed may implement seven quarter-point rate hikes this year and another three to four next year.
In a statement following the FOMC meeting, Fed officials expressed rising concerns over inflationary pressures made more acute by the war in Ukraine. Members also indicated that they would soon announce a plan to reduce the Fed’s $9 trillion balance sheet.
FINANCIAL STRATEGY OF THE WEEK
Traveling in 2022? Here are some money-saving tips to use while you enjoy the wonderful local cuisine.
Your first buttery taste of a perfectly flaky Parisian croissant, the way a rich Italian hot chocolate melts in your mouth, the best Indian daal of your life - food memories are often the longest lasting. And for good reason. Tasting new cuisines is a key reason so many travelers love exploring the globe. But it’s not always easy to dine well and eat on a budget while traveling. The secret may be to act less like a tourist and more like a local.
Get into the [local] zone
A surefire way to save money on food while you travel is to venture outside the tourist zone. Ask a hotel employee or other local resident to recommend eateries outside the city centers, where tourists usually flock. Neighborhood restaurants are often less expensive and, almost invariably, great food; they also provide a refreshing change of atmosphere.
Make local reviews your friend
Besides talking directly to residents to find the can’t-miss restaurants, you can check out websites like Eater, which has links to microsites sharing restaurant reviews from local patrons around the globe. There are also apps like ChefsFeed, which lets you in on where some of the world’s best chefs like to dine when they’re not at their own restaurants.
Rethink your definition of fine dining
You don’t need to spend a lot of money to have a great meal. Have lunch instead of dinner at your splurge restaurant. Lunch menus tend to have lower prices, often for just slightly smaller portions than the same dishes you find on the dinner menu. Opt for cafes over more formal restaurants.
Grab some groceries
Visit a local supermarket or farmers market to pick up the ingredients for a simple picnic meal to take to a park.
Eat light and share
Order an appetizer in place of an entree, or split one entree between two people.
Eat on the street
It’s a fun way to eat on a budget while traveling - just be careful where you grab a bite. Street food is typically very affordable and very local, but you do want to take safety precautions. Make sure to go to a stall that’s really busy, with a high turnover of the food so it’s not sitting around.
Keep snacks in your pack
Carry something to nibble on - like fruit, nuts or a baguette - when you go out on a tour or excursion.
Eating on a budget while traveling can be a challenge, but if you dine and shop like a local, you can find some great bargains - and often the best bites around. As always, please feel free to contact us with any questions that you may have.
Have a great week!