U.S. stocks closed Tuesday's session higher to snap a four-day losing streak.  The Dow Jones Industrial Average jumped 0.3%, the S&P 500 climbed 0.73%, and the Nasdaq Composite added 1.01%.  Anna Rathbun, Chief Investment Officer of CBIZ Investment Advisory Services, joined Cheddar News' Closing Bell to discuss.

U.S. Stocks Close Higher to Snap Losing Streak

let's come back to the major indexes joining me now, is ANna Rathman, chief investment officer at CB's investment advisory services and thanks so much for coming on the show. We do see fractional gains across the board and I think that is welcome news for investors after a heck of a lot of selling lately. What's your outlook for the stock market um, for the rest of the year, the volume is expected to be low. So we might actually get that santa rally, but it's not enough to make a difference for a double digit negative year. Um If you're thinking going into 2023 Um, I think there's negative negative pressure for the markets because we are expecting a recessionary environment and it normally takes about 6 to 12 months for all of these Fed hikes that we've endured in the financial markets and the impact on the financial markets to actually make its way into main street. So we don't know what that's gonna look like and that makes markets jittery. So what should investors do anna do, they just kind of wait on the sidelines. What would be the best advice that you'd have for them? Well, so we always preach long term investment. So you personally have to know what your goals are, um, what your long term goals are and actually ride this out. Um We know that there's a lot of cash waiting in the sidelines, especially from retail investors trying to get in and that might actually be supportive of the markets, but we do not recommend market timing because it never works. You have to know when to get out and then you have to know when to get in. You have to get it right twice the question that I want to add rescue last hour we had did a story. I read a story and I've actually been hearing this more and more to that amid what's been a down year in stocks kind of a down year everywhere, except for maybe, you know, the 3% yield that you're now getting in your higher high yield savings account. So some people wealthier investors, wealthier americans have been turning to art perhaps as a long term investment there. I'm just curious if you have a take on that, whether or not you think that that that might be an option in this market? Yes. So art would be considered alternative investments. So alternative investments is a very, very large tent. It has everything from private equity to private credit hedge funds and art would belong in that category. I mean, we recommend under the recommendation of diversification if art is your thing, it would fit into it. Very interesting. I'm glad we could cover that. So, let's talk about what's going on in the economy, inflation is starting to show signs of coming down. That's a positive the retail sales data that we got recently in this past week also showing a tick lower as well. And that's, you know what obviously the Fed wants to see here. But in terms of the economy, what should consumers be prepared for do you think inflation can continue to come down amid increasing rates? And what does that do to consumer spending in the jobs market? So I would look at inflation from two different perspectives from goods and services. So on the good section, if you've gone holiday shopping at all you've probably seen prices being slashed, actually prices have been slashed since october, so it is normally holiday shopping in november was a little bit early on. We saw that in the retail sales um popping up in october and then going down in november despite black friday or cyber monday. Um So the goods prices are coming down and that is definitely helping the headline inflation number come down but there's a services component of it. So if your local retailer is having sales on yoga pants um your dentist is not going to to have a you know, blowout sale on his or her services, so services inflation tends to be stickier and it tends to be tied very closely to wage growth and everyone knows we have a shortage of labor in this country right now, people are still having, even in a recessionary environment, people are still having help wanted signs right? So the upward pressure on wage growth is going to continue to apply upward pressure on services part of it. So going into 2023 we might see easing of price pressures for consumers on the good side. But you might not necessarily see it on the services side. And the big question is will inflation come down? It will come down but fast enough. To the point where Fed feels feels comfortable, Right? So that's tricky. Right? I mean 2%. That's still a long ways to go. So what kind of scenario Anna does that set up? I mean how long will the Fed need to keep raising rates? And is there kind of a new target beyond 2% that maybe Americans should start getting used to when it comes to inflation? Yeah. So there are a lot of things that are putting upward pressure on prices. Um I don't think we're going to have runaway inflation that some people may be afraid of. I think the narrative consensus narrative now is that inflation is coming down, but again, as I said, how quickly is it coming down? Maybe 2% might be a little bit too low considering that we're looking at less global Ization than before. Energy prices are higher than before. Um and we have a labor shortage that we didn't see before the pandemic. So or not to the extent that we see it now. Um so there's definitely upward pressure may not maybe not 2%, but that's still the Fed's target. So what I'm worried about is that we may still have inflationary pressures maybe in the four or 5% in 2023 that's not good enough for the Fed. So the Fed continues to raise rates and then we have a recession on top of that. That's a pretty painful triad for regular americans. Uh, and unfortunately, we gotta end there. I wish we had more time. It's great to have you. That's anna Rathbone, chief investment officer at Steve's Investment advisory Services.