#37 CFO Midnight Macro

Top 5 macro indicators we're watching

Hi Everyone! đź‘‹

Welcome to the new members of @TheFundCFO crew! Every [week] or so (#goals), we’ll bring you actionable tools, real-world experiences, and insider insights for #VC CFOs and fund managers, #LP investors, and general industry enthusiasts/people who want to learn :).

CFO Macro

In early January, we shared insights in #29 CFO Macro: 2022 vs. 2023. We looked back at 2022 and shared some notable predictions for 2023. One month into the year, we’re tracking “ahead of plan.” More on that below!

Market Snapshot (Prices as of 4pm ET on 2/6/23; % YTD)

The Macro Top 5

  1. Markets: see above :)

  2. Inflation: “2023 has arguably started to see a return to a more normal market environment, as inflation has continued to moderate and short-term interest rates have declined.” Eddie Duszlak, CIO at Virtuent

  3. Interest rates: Matching market expectations, the Federal Reserve's Federal Open Market Committee (FOMC) hiked its benchmark federal funds rate by 25 basis points to a range of of 4.5% to 4.75% on February 1st. The next meeting is in March with another 0.25% increase expected.

  4. Employment: Labor market still tight, but wage growth slows. A strong appetite for labor is keeping pressure on the Fed. The US added >500k jobs in January.

  5. Tech stocks: Meta shares popped 26% last week after better-than-feared quarterly revenue, despite ad-pocalypse. Zuck said 2023 is Meta’s “year of efficiency” (sorry, metaverse). It expects to spend less after slashing 11K+ employees.

That’s all for today folks! Thanks for your support and for spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”