Weekly Update August 1: Click here to read A Slower Pace Going Forward?
by
Share Post:
Dear Friends,
The Federal Reserve ended its two-day Federal Open Market Committee meeting last Wednesday, and the outcome was broadly in line with market expectations. As expected, the Committee raised short-term interest rates by 75 basis points (0.75%) to take the fed funds rate to 2.5%.
Market volatility will likely remain elevated until the Fed starts to slow the pace of rate hikes. Until then, there could be some more financial tightening in the pipeline from the hikes that have already been made but maybe haven’t taken full effect yet throughout the economy.
The next FOMC meeting is not until September and the Fed will have two more inflation prints to mull over when deciding the next rate hike. The recent negative -0.9% annualized 2Q GDP print certainly puts the Fed in a difficult position and may make a softish landing that much more difficult to achieve.
Although Wednesday’s rate hike marks the latest move in the Fed’s efforts to tamp down the strongest inflationary pressures in roughly four decades, markets jumped after the increase was announced. The Dow Jones added more than 450 points and the tech-heavy Nasdaq Composite surged 4%. The chart below historically shows even after fed rates increase, the markets perform well overall.
We will be monitoring earnings results this week, but so far so good, for clues about how companies are navigating decades-high inflation. Regardless of how markets react during the short term, we remain optimistic as we now suspect the market is bearishly positioned.
Please reach out with any questions.
Debbie
Share Post:
Get in Touch
In just minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.
by Michael Valenti, CPA, CFP®️, Director, Tax Planning
Mike Valenti, CPA, CFP®, Director of Tax Planning Qualified retirement plans – such as 401(k)s, 403(b)s and IRAs – offer clear tax advantages. Traditional 401(k)s, 403(b)s, and IRAs offer a tax deferral on contributions and growth until distribution. Their Roth counterparts can provide an i …
by Thomas Fridrich, JD, CLU, ChFC®️, Senior Wealth Planner
Kevin Oleszewski, CFP®, MST, EA, Senior Wealth Planner As you’re setting your new year’s goals, one that should top everyone’s list is increasing your savings. After all, we’ve recently seen inflation at work, reminding us that even everyday essentials can bust budg …
by Jamie Hopkins, Jamie is the Managing Partner of Wealth Solutions at Carson, and he specializes in educating both investors and advisors. A nationally recognized author, researcher and educator, Jamie is a regular contributor to major industry publications and a go-to expert for the media on retirement income planning and tax law.
By Jamie Hopkins, Managing Partner, Wealth Solutions The SECURE 2.0 Act has passed, making it the largest retirement legislation since the original Secure Act hit in the late 2019.
by Thomas Fridrich, JD, CLU, ChFC®️, Senior Wealth Planner
Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner Thinking about making some New Year’s resolutions? Add financial wellbeing to your list. It’s a terrific time to identify goals and opportunities that may put you in a better financial position — not only in the upcoming year, …
by Thomas Fridrich, JD, CLU, ChFC®️, Senior Wealth Planner
Tom Fridrich, JD, CLUⓇ, ChFCⓇ, Senior Wealth Planner The end of the year offers an ideal opportunity to look both forward and back — reflecting on recent achievements, while setting goals for the upcoming months. For many of my clients, it’s also a time to review their finances and i …
by Sonu Varghese, PhD, VP, Global Macro Strategist
Last Friday, yet another strong payroll report was released with the headlines stating payrolls grew 263,000 in September and the unemployment rate fell to 3.5%.
“You make most of your money in a bear market, you just don’t realize it at the time.” —Shelby Cullom Davis We all blinked, and it is now October. This can be a good thing if you’re hoping for some higher stock prices. As this great quote by Shelby Cullom Davis above explains, it is …
by Thomas Fridrich, JD, CLU, ChFC®️, Senior Wealth Planner
Kevin Oleszewski, CFP®, Senior Wealth Planner It’s hard to fathom, but there are a lot of employee benefits that people aren’t using correctly — or aren’t using at all.
2022 has been historically difficult for investors so far, and it’s likely you have questions. We’re here to answer some of the most common questions we’re hearing nowadays.
Chances are good we’ve all felt a bit like Rachel on “Friends” when she peruses her first paycheck in bewilderment and says, “Who’s FICA? And why’s he taking all my money?”
