V2 Model Feb 4 2022 Update

Recap

The week got started on a softer note as investors took some money off the table following a strong showing this month. A strong rebound effort took root on Wednesday. This followed the FOMC's unanimous decision to raise the target range for the fed funds rate by 25 basis points to 4.50-4.75%, as expected, and Fed Chair Powell's press conference, where did not go out of his way to rein in the market's rebound enthusiasm.

The final session of the week turned out to be a losing session with disappointing earnings and/or guidance from Alphabet (GOOG), Amazon.com (AMZN), Starbucks (SBUX), and Ford (F) dictating the action along with a surprisingly strong gain in January nonfarm payrolls (+517,000) and a stronger than expected January ISM Services PMI (55.2%) that marked a return to growth mode.

The strong data created some doubts as to whether the Fed will pause its rate hikes soon and cut rates at all before the end of the year.

The V2 Portfolio was slightly down this week and we lost ground to the SP500.

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