Contradictory Fed-Speak, Annualized Returns & RIA vs. Broker

Fed-Speak, PCE Price Index Data & Annualized Returns

The Money Wise guys are back in the studio and this week’s topics include the PCE Price Index, confusing Fed-speak and so much more. The guys kick things off with a look at last week’s numbers from Wall Street. The Dow was up 1.3%, the S&P 500 was up 1.7%, and the NASDAQ was up 1.4%. YTD the Dow is up 3.8%, the S&P is up 6.7%, and the NASDAQ is up 6.6. Well, it was quite a week! The guys discuss the S&P’s annualized return – which is surprising yet highly unlikely to remain up this much. The guys ponder how much of the Q1 performance we’re seeing now is going to slow down as the year goes on, and they share confusion about this week’s contradictory Fed-speak regarding interest rate cuts. What will the timeline really look like? Well, the Money Wise guys think we have many more months before we see cuts. They also discuss expected Personal Consumption Expenditures numbers, also known as the PCE Price Index, which we’ll see next week, and which could push rate cuts back by as much as a quarter.

Understanding the PCE Price Index

The PCE Price Index, which is the common abbreviation for the Personal Consumption Expenditures Price Index, is expected next week. Why does the PCE Price Index matter? Well, this number is released each month as part of the Personal Income & Outlays report. The PCE Price Index is a measure of the prices that people living in the United States are paying for goods and services, meaning it relates to inflation. To learn more about the PCE Price Index and how it differs from the Consumer Price Index, check out this explanation from the Bureau of Labor Statistics.

In the second hour today, the Money Wise guys discuss the RIA vs. Broker differences you need to know. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.