Watch for the Lag-effect of Interest Rates (2/16/23)

(2/16/23) Economic data has continued to improve since the beginning of the year, with stronger jobs numbers, retail sales on the upswing by 3%, national home builder sentiment is improving, and manufacturing indexes are better-than-expected, and the CiticGroup Surprise Index has risen sharply: Improving economic data surprising economists expecting weaker reports. At this point, it is more likely that economists' optimism stands a better chance of missing their forward looking estimates. The problem with economic data is that it's a lagging indicator. The conundrum is the markets' rising on the thesis of a coming, soft-landing as the economy is doing fine, and the Fed could pivot...but why would the Fed lower rates if the economy is chugging along, which all feeds into the inflationary cycle? Fed Funds futures markets are now factoring-in a third rate hike this year to quell economic expansion and resulting inflation. A consolidation or correction will provide investors with an opportunity to increase equity exposure in the near term. But watch for the lag-effect of interest rates, and the potential for a delayed-response recession. Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton -------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Watch the video version of this report by subscribing to our new "Before the Bell" YouTube channel: https://www.youtube.com/watch?v=XVzMd8cHEPs&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #InterestRates #LagEffect #Inflation #Recession #RetailSales #MarketCorrection #FederalReserve #Markets #Money #Investing