#43 CFO Monday Macro

Hi Everyone! đź‘‹

Welcome to the new members of @TheFundCFO crew! Every M/W/F, we 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. We started our Monday macro series earlier in February (#37 CFO Midnight Macro (2/6) & #40 CFO Monday Macro (2/13)).

The markets were down again last week (S&P -0.3%, NASDAQ -0.6%) but we’re still up for the year and tracking “ahead of plan.” More on that below!

Market Snapshot (Prices as of 4pm ET on 2/17/23; % YTD)

The Macro Top 5

  1. Markets: see above - still in the green after a slight step-back last week.

  2. Inflation: last week’s CPI report has “investors rethinking the Fed’s rate path. The focus has also shifted to services inflation where prices are rising much faster than they are for goods (7.2% vs. 1.4% YoY, respectively).” Grit Capital 

  3. Interest rates: Futures are now betting the Fed funds rate will end 2023 at +5%. The FOMC benchmark federal funds rate remains at 4.5% to 4.75%. The next meeting is in March with another 0.25% increase expected.

  4. Employment: “Layoffs spread, but some employers can’t hire fast enough. Service industries such as hospitality and restaurants have been hiring to rebuild after the pandemic.” CNBC

  5. Tech stocks: “High-profile hedge funds dive back into beaten-down tech stocks to capitalize on the big comeback.” CNBC

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!”