Latest Data on Inflation and Labor Markets Paving the Way for Fed Rate Cuts
Following the weak jobs report that left many on Wall Street questioning the prospects of a “soft landing,” we’ve seen a bit of unrest in markets over the last few weeks. Remember, a soft landing includes cooling inflation back to the Fed’s 2% target while maintaining a healthy labor market. With a slight crack showing […]
Two Ways to Combat Household Inflation
Inflation is not a one-size-fits-all all phenomenon Inflation is the increase in prices over time Increasing prices means decreasing purchasing power How we choose to spend our money dictates how we experience inflation Inflation has been top of mind for every participant in our economy for three years straight: households, businesses, and policymakers. Inflation […]
The Latest on Inflation/Rates and Where We Go from Here
Without question, over the past year, the most common topic we have discussed with clients is inflation and rates. Whether you are in retirement, peak accumulation years, or just starting out, inflation has impacted everyone… from raised costs at the grocery store, to travel, to even attending a sporting event. Fortunately, there are increasing signs […]
Fed Rates, Inflation, Yields
What a difference a couple of years makes. Even the casual fan has likely heard the talk about interest rates and felt inflation during these past twenty-four months. Two years ago, in February 2021, the Federal Funds target rate was 0 – 0.25%. It remained there until just over a year ago in March 2022. […]
Markets Finally Believe Fed is Serious about Inflation
The Fed raised rates 0.75% last week, the biggest single move since 1994 Market participants imply that rates will move from 1.75% to 3.56% by year-end Perception of a hawkish Fed may help avoid a wage-price spiral & severe recession Last week the Federal Reserve raised rates by 0.75% or 75 basis points (bps). […]
Fighting Inflation – Why This Time Feels Different and Could Actually Be Successful
Key Takeaways There were 11.4 million job openings in April equaling 1.92 job openings per unemployed person, a huge benefit to a Fed attempting to bring down inflation without cratering the job market. The Fed’s ideal labor market resolution is that companies fill current openings while maintaining their current workforce. Friday’s jobs report showed a […]
Counteract Inflation with Your Financial Assets
Key Takeaways Inflation in October 2021 was 6.2%, the highest in nearly 30-years. From 1914 to 2021, average inflation in the U.S. has been around 3.2% and the average return of the market (i.e., S&P 500) has been around 10-11%. While not without risks, investing in equities is a tested long-term hedge against inflation. […]
Interest Rates & Inflation
Over the past decade, the Federal Reserve has been pushing for modestly higher interest rates and inflation. To anyone following the markets or economic news, this statement is nothing new to hear. However, with higher inflation starting to build momentum, an economy that is beginning to stand on its own, and the potential of a US government […]
Inflation Concerns: Are Higher Prices Here to Stay?
Higher prices are here – I learned this last month when booking a rental car for our summer vacation, a 6-day rental for which I had typically budgeted $400-$500 was now going to cost over $1,000. Although an unpleasant surprise, the reasoning is quite simple, the travel demand has skyrocketed, in conjunction with a major […]
Market Commentary | Q3
Markets entered September with a cautiously optimistic tone following a mixed August that was marked by softening labor data, persistent inflation pressures, and renewed speculation around Federal Reserve policy direction. The S&P 500 posted modest gains last month, driven largely by strength in AI-related tech, semiconductors, and mega-cap growth stocks. At the same time, small-caps, […]
Guest Commentary: Stefan Hendrickson on OBBBA & Taxes
An interview with Stefan Hendrickson, CPA/ABV, Tax Associate Director, Dean Dorton. In your view, what are the most important provisions of the OBBBA that individuals and families should know about? The big headline for the OBBBA for the majority of taxpayers is the extension of many of the 2017 Tax Cuts and Jobs Act […]
Summer Market Update -Stability & Strategy
Despite bouts of heavy volatility in recent months, financial markets continue to exhibit a cautiously optimistic outlook, based on resilient economic fundamentals and strategic policy support. Economic Growth & Corporate Earnings After a sluggish start to the year, the U.S. economy is showing signs of steady, albeit moderate, growth. Consumer spending has shown resilience leading […]