#46 CFO Monday Macro: 5.5% Rates Coming

Hi Everyone! 👋

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), #43 CFO Monday Macro (2/20)).

The markets were down big last week with the S&P having its worst week of 2023. Sentiment has weakened noticeably since we started the weekly macro - time to switch back to monthly?!?!

Market Snapshot (Prices as of 4pm ET on 2/24/23; % YTD)

Top Macro Take From Last Week

“Stocks dropped this past week. Economic reports indicated that high inflation seems persistent, yet consumer spending is still strong. Right now, this fits into the no-landing story. The obvious conclusion is that the Fed is going to keep raising rates.” 

“In addition, the prior week’s CBO report about our horrible fiscal situation seems to be getting more traction than normal. The only thing worse than the trajectory of our debt is the fact that our elected officials seem unwilling to work together to solve this problem. I think that the realization that our debt problems are becoming more important could make the debt ceiling crisis scarier this summer.”

Sandy Leeds

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