Pessimism about the economy

SAS Financial Advisors, LLC |

A recent study attempts to pinpoint the reason there is so much pessimism about the economy among the American population. The research focuses on the current high interest rates affecting Americans in the cost of credit card debt and auto loans: 

 Americans' credit card, auto loan delinquencies spiked in 2023

Credit Card and Auto Loan Delinquencies Continue Rising; Notably Among Younger Borrowers - FEDERAL RESERVE BANK of NEW YORK

The impact is being felt greatest among younger Americans.  Delinquency rates for auto loans have risen above pre-Covid rates.  With the news this week from the Fed that the plan is still to lower the Fed funds rates 3 times this year, market averages rose to new records. Markets are finicky. Bad news (Fed keeps rates unchanged) is interpreted as good news (Dow and other averages reach highs).

At SAS we take our financial planning work seriously.  We realize each client and each situation is unique.  Our goal is to give our clients guardrails in regard to decisions that improve their chances of success.  Improved confidence leads to better decisions moving the dial a little closer to success.  Positive thinking and positive psychology have an effect on success.  Success can never be guaranteed so our goal is to improve the chance of success.  The only guarantee we make is that plans will change.  A financial plan is like a snapshot and life is like a videotape.  All we provide is a snapshot with assumptions based on history and a formula that takes into account the many variables that are important in determining success like timing, variations in market returns and inflation.  It’s the best we can do from a fact based and historical point of view.   When outlining the guardrails an important consideration for us is preparing our clients for the likelihood of change and assessing that same client for their ability to adapt to changes.  While we build our relationship with you, our clients, we use our knowledge and experience to shape behavior with the same goal of increasing the chance of success for you.  The question that we ask ourselves and you should ask yourself through our work and your life is “are you doing the best that you can ''?  Sometimes doing our best is not enough to achieve our goal but sometimes we have to alter our goals if doing our best doesn’t get us there.  At SAS, we are always asking ourselves “are we doing the best that we can”?


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