V2 Model April 12 2023 CHANGE

Recap

The day started on an upbeat note as investors digested the Consumer Price Index (CPI) for March. The S&P 500 and Nasdaq logged gains of 0.6% and 0.9%, respectively, shortly after the open.  Early gains dissipated, though, as mega-cap stocks rolled over and as Treasury yields also climbed off their post-CPI lows. 

The Fed Minutes this afternoon revealed that participants agreed that inflation remains too high and that the banking problems increased economic uncertainty. Still, all participants agreed that it was appropriate to raise the target range for the fed funds rate even though the staff economic outlook included a mild recession starting later this year given the potential economic effects of recent banking-sector developments.

Things rolled over again in the late afternoon with mega-cap stocks leading that slide. The selling interest was likely also driven more by valuation concerns rather than a negative reaction to the Fed forecasting a mild recession. 

The V2 Portfolio was down today and we will make changes during tomorrow's session.

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