V2 Model Feb 19 2023 CHANGE

Recap

The S&P 500 and Dow Jones Industrial Average closed lower for the week as investors reacted to this week's economic releases, along with comments from several Fed officials.

Month-over-month inflation data in the January Consumer Price Index (CPI) was not pleasing, but the report reflected continued deceleration on a year-over-year basis. Services inflation, less energy services, was a notable exception, having accelerated to 7.2% year-over-year from 7.0% in December.

On the heels of the CPI report, market participants received a much stronger-than-expected January retail sales report, higher-than-expected producer price data for January, and another remarkably low level of weekly initial jobless claims.

The positive economic news, along with accelerating services inflation, fueled concerns about the possibility of the Fed raising rates more than previously expected and keeping them higher for longer than previously expected.

The V2 Portfolio was flat this week and we gained on the SP500.

The V2 Portfolio will make a change during Tuesday's session.

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