Your Mid Week Blip 3/31/22

Your Mid Week Blip 3/31/22

Important Changes at Greystone
The Greystone Financial website will be offline starting tomorrow and for the next month as part of our firm’s transition to an independent RIA (Registered Investment Advisory) firm. The letter announcing our upcoming transition went out yesterday and on May 2nd we will be sending out the new account applications as we transition from Pershing as the custodian to Charles Schwab. Our phone system and phone numbers remain the same and we will be working away from our offices in Kirkland so if you need anything please do not hesitate to call or stop by.
The Markets and Economy
The markets have rebounded about 9% over the past two weeks even though the last two trading sessions have gone negative as events in Ukraine appear bleak with continued turmoil. For the first quarter of 2022 the Dow lost 4% or roughly 1,500 points after closing down 550 points today at 34,678. While uncertainty is the order of the day both IBD and BTS indicators are positive at this time.
Oil prices have started to ease somewhat given the slacking demand in China from lockdowns coupled with OPEC saying it will increase production in May and the announcement by the White House to release more oil from the strategic Petroleum reserve. Offsetting the current supply demand situation could be Russian not delivering oil or gas unless it is paid for in rubles which the Europeans are loath to do. While the price of WTI crude has fallen to roughly $101 per barrel the price of natural gas remains elevated as demand for LNG is robust and rising.
Inflation continues to hit US consumers and in Europe we are also seeing rising prices with Germany is now reporting 7.3% inflation while France is at 5.1% and Belgium at 8.3%. Indications are the European Central Bank, like the Federal Reserve, is moving to a hawkish stance to aggressively fight inflation with monetary tightening.
Items of Interest
This weekend yours truly will lead a scout/crew 7 mile day hike to Mount Si. There is a new kid who signed up to join the troop and I asked him what he had for hiking pants and he meekly replied “blue jeans” to which several scouts responded “cotton is rotten” and vowed to help the young man get the proper gear. The Crew is looking at climbing Mt Baker this summer as well as an assault on the infamous Three Fingers Lookout. It should be fun. I just hope I survive!