SAS Financial Advisors, LLC |
Market Now We have seen a bounce back in market averages after approaching year to date lows earlier in the month. Market’s higher moves have occurred even as interest rates continue to increase across the yield curve. The US Treasury yield curve continues to be inverted indicating an economic slowdown ahead, but investor sentiment is off its lows indicating slightly more “bullish” optimism among individual investors. However, the increase in bullish sentiment is modest with...
SAS Financial Advisors, LLC |
Market Now “There are two kinds of forecasters: those who don’t know, and those who don’t know they don’t know.”– John Kenneth Galbraith Predicting the future has been a fascination for humans since time began. Some predictions have actually turned out to be true. For instance, you could say economists are correct with their forecasts 50% of the time. We just don’t know which 50% are correct. Each year the Wall Street Journal surveys economists...
SAS Financial Advisors, LLC |
Market Now The big day this week is Thursday when the latest CPI numbers are released. In this case, if CPI is lower than expected that should be good news all the way around. Right now, economists expect a reading of 8.1% down from 8.3% in August. There is no doubt that the impact of the Fed raising rates at a record pace is having a significant impact on the economy however it is delayed...
SAS Financial Advisors, LLC |
Reminder: focus on what you can control. Markets are one area that we cannot control. Look at this week so far: the first two days of this week we had two of the biggest market gains of the year after a miserable market decline for September. Markets are not under our control. Regarding market behavior, what we can control is our response to market moves. Emotions do not play an adequate role in making decisions...
FAFSA Season starts October 1st, 2022 The majority of Americans pay for college with a mix of current parent and student cash flow (work income), savings, student aid, scholarships, gifts, and student and private loans. Most importantly, student loans have an impact on students and parents. SAS usually recommends parents prioritize a plan for funding their own retirement before prioritizing paying for college, due to the fact that a student can obtain loans to pay...
SAS Financial Advisors, LLC |
Uptick in Rates The Federal Reserve meeting ended Wednesday this week with an announcement of a .75% increase in the Fed funds rate from 2.25-2.5% to 3.00-3.25%. This certainly was not unexpected as interest rates had been rising in anticipation. 30-year mortgage rates are now above 6% and not surprising mortgage refinancing and home sales have slowed down dramatically. More signs are increasing that the economy is slowing down. Layoffs are increasing and the unemployment...
SAS Financial Advisors, LLC |
Markets This week’s inflation report caused a monumental drop in stock market averages due to expectations for a decline in prices as a result of a decline in the price of gas. The results were disappointing leading to confirmation in markets that next week’s Fed meeting will result in a ¾% increase in the Fed funds rate making borrowing rates increase and decreasing the value of earnings growth in the future. Increasing interest rates cause...
SAS Financial Advisors, LLC |
Markets September is historically a tough month for the stock market. Historical patterns can be a valuable tool for certain investors who have figured out timing markets, but extensive research says execution and consistent outperformance is very, very difficult. Missing a handful of the best days in the market over long time periods can drastically reduce the average annual return an investor could gain just by holding on to their equity investments during sell-offs. Now...
SAS Financial Advisors, LLC |
Markets As August ends with a decline in the stock market and increase in interest rates, the economic uncertainty continues. The life expectancy rate has fallen again this year for Americans. We are closer to a bottom in the stock market than we were last month and negative sentiment along with headline negative sentiment is increasing. Short term interest rates are providing a safe haven for cash although inflation rates far surpass interest rates on...
SAS Financial Advisors, LLC |
Estate Plan Elements: TOD and Joint Accounts Continuing August as “National Wills Month,” TOD, or “Transfer on Death,” is another important aspect of estate planning. It involves designating an individual or entity to receive your assets after your passing, outside of probate. Probate court is the state law that determines where your assets will go if you do not have a beneficiary or TOD designated for your Investment accounts. Retirement accounts require beneficiaries. Investment or...
"SAS Financial Advisors, LLC" |
The “Inflation Reduction Act,” what is left of “Build Back Better,” has been signed by President Biden. This happened the same week that FBI agents implemented a document search at former President Trump's Mar-a-Lago residence. We know what item received the most attention. The IRA act is broad ranging and has already influenced market sectors, especially alternative energy companies. There are substantial benefits in areas of daily life, many of which are phased in over...
SAS Financial Advisors, LLC |
Now that the “Inflation Reduction Act” has moved out of the Senate, we should see the Consumer Price Index move towards zero! Well, it has not passed the House or been signed by President Biden. After that, the CPI will move to zero. Not really of course. Although importantly, in the latest Fed Survey, consumers' expectations of inflation in 2022 is 6.5%, but in 2023 and the next 3 years inflation expectations are 3.2%, a...