Reinhart Week in Review by Madison Investments 11.11.22


INFLATION

The Consumer Price Index (CPI) rose 0.4% in October. Prices excluding food and energy rose 0.3%. Both reports were lower than expected. Over the last twelve months, prices have risen 7.7%.

Our Take: Markets rallied dramatically as consumer prices rose less than expected. While inflation lower than expected is welcome, it is still well above Fed targets. Multiple Fed speakers intimated that tightening is far from over despite the CPI surprise.

MUNICIPALS

Municipal bond measures totaling nearly $66 billion were on ballots across the country this week. After the voting, at least $37 billion of municipal bond measures were approved while some measures remain too close to call.

Our Take: This year’s amount of bond measures on the ballot is significantly higher than last year’s $27 billion as many municipalities postponed projects during the pandemic. State and local governments with measures that were approved this week now carry the task of deciding whether or not to issue in the current market environment. Some may choose to delay issuance if borrowing costs are too high.

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”), which also includes the Madison Scottsdale office. MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

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Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

This website is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.
Although the information in this report has been obtained from sources that the firm believes to be reliable, we do not guarantee its accuracy, and any such information may be incomplete or condensed. All opinions included in this report constitute the firm’s judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.