Historically, both the economy and the stock market experience natural, yet unpredictable, economic cycles, expanding for 8 out of 10 years and contracting for 2 out of 10. When wages and prices soar, the Fed raises interest rates to slow these down. As the Fed slows the pace of their rate hikes, we will look to lengthen the duration of our bond portfolios to lock in higher yields for longer periods of time.
The economy as a whole, with rising consumer spending, normalizing supply chains, and a tight labor market, is still strong. As interest rates rise, short-term bonds continue to hold up better than long-term bonds. Many short-term bonds are now paying over 4%.
On June 15th, the Federal Reserve increased the federal funds rate by 0.75% to fight inflation.
This was the largest increase since 1994, and the third increase of the year. Fed Chairman Jerome
Powell indicated that rates are anticipated to be increased an additional 1.75% prior to yearend.
In the Barron’s article linked below, Neal Templin features Susan Elser, CFP® and asks what advice she would give to retirement savers. In the conversational exchange, Susan discusses several advantageous elements of retirement planning, including account type utilization, tax efficiency, and the importance of opportunistic rebalancing.
“If you’re in your 60s, you probably don’t do calculations as quickly as you used to. It might take you a bit long longer to learn the nuances of a new investment. Yet when researchers test the financial decision-making capacity of people in this age cohort, they often perform as well Read more…
“Coinbase CEO Says Regulation and Cybersecurity Are 2 of the Biggest Threats to Cryptocurrency” – Katie Canales
Many investors have added, or considered adding, digital currency to their portfolios. While it can be a good diversifier to stocks and bonds, there are risks, as with any investment. Before making any investment decisions, investors should educate themselves on the potential risks and benefits. Find the complete article by Read more…
Long-term care insurance can be a sound part of a financial plan, but do you need it? The answer to this question should be tailored to your unique situation and goals. Find Neal Templin’s