Investment Commentary – February 18, 2025
Executive Summary The S&P 500 hovered near its all-time highs, while the bond market ended the week with gains (price up / Yield down) as weaker-than-expected retail sales rekindled hopes for Federal Reserve rate cuts. A rally in Treasuries drove the 10-Year Yield below 4.5%, marking its fifth consecutive week of gains—the longest streak since […]
Economic Commentary – February 18, 2025
It is more than a bit unusual, in an economy growing almost 3% and an unemployment rate at 4%, to suddenly see so many Google (and ChatGPT) searches on the subject of US Unemployment Benefits. Normally, questions about unemployment benefits materialize when an economy is weakening, the unemployment rate is rising and in the context […]
Navigating Inflation: What a 3% CPI Means for Your Financial Plan
Navigating Inflation Inflation remains a concern, holding steady at 3% (U.S. Consumer Price Index, February 2025). Given this persistence, the Federal Reserve is unlikely to lower rates aggressively. While this may feel unsettling, it is important to put the numbers in perspective. The 50-year average inflation rate before 2022 hovered around 2.3%, but now it […]
Economic Commentary – February 10, 2025
The most notable number for this week is the number from Friday of last week— but NOT the nonfarm payrolls number, despite its importance. The Michigan Survey of Consumer Confidence caught almost everyone unaware, both the decline in the figure and, especially, the sharp spike in one-year inflation expectations. Although there has been much complaining […]
How Tariffs and Policy Shifts Could Impact Your Long-Term Wealth Strategy
What Policy Shifts Could Mean for Your Long-Term Strategy Many changes are unfolding in Washington, including ongoing discussions about tariffs – most recently on steel and aluminum. The outcome remains uncertain, leaving many wondering how these shifts could impact inflation and financial markets. Uncertainty often breeds concern, sometimes even fear, which can reduce consumer spending. […]
Investment Commentary – February 10, 2025
Executive Summary Non-U.S. equities are benefiting from central banks cutting rates and economic data that is holding in ok. The Bank of England cut interest rates last week, and some of its committee members wanted a bigger cut. Overall, it sent dovish ripple effects across markets, resulting in another higher bounce in broader European equities. […]
Investment Commentary – January 27, 2025
Last week, stocks experienced a slight pause near record highs, but the market still secured its strongest start to a presidential term since Ronald Reagan took office in 1985. In addition, On Friday, the S&P 500 slipped 0.3%, the Nasdaq 100 dropped 0.6%, and the Dow Jones Industrial Average declined 0.3%. A Bloomberg Index tracking […]
Economic Commentary – January 27, 2025
This week, the Federal Open Market Committee meeting is expected to introduce a new monetary policy concept: The Pause. Of course, there is no such theory called “The Pause,” and there is not much theory behind this (in)action. Monetarists believe there is a theory that governs the correct level of money supply for the level of […]
Wildfire Insurance Claims and Mortgage Payments: What Homeowners Must Know
The Impact of Wildfires on Insurance Claims and Mortgage Payments The recent wildfires in Los Angeles brought attention to an important issue regarding insurance claims for homeowners with mortgaged properties. Many homeowners are surprised to learn that when their property sustains structural damage, the insurance check for the full insured amount is sent directly to […]
Investment Commentary – January 21, 2025
Executive Summary Earnings season starts strong, and U.S. economic data keeps beating estimates. Last week, stocks and bonds were up on the week (bond prices up / yields down). The S&P 500 outperformed the MSCI EAFE and MSCI emerging markets indices. The best-performing sectors in the S&P 500 were energy, financials, and materials. Across U.S. […]
Economic Commentary – January 21, 2025
Some of you will remember the famous quote from the film “Apocalypse Now”: “I love the smell of napalm in the morning.” You can be forgiven for thinking this might be the new, intentionally theatrical motto of trade negotiators everywhere. Toss a few incendiary bombs (words) and see what happens. While this is not the […]
Gen X Retirement Planning: Strategies for the Sandwich Generation
Gen X and Retirement Concerns People between the ages of 45 and 60, labeled Generation X, are increasingly worried about retirement. Despite many having substantial liquid assets, some find themselves questioning whether they’ll be able to afford their retirement expenses when everyday costs rise. According to a recent Allianz Life survey, inflation is a top […]