The Wealth Effect Podcast: Recent Episodes
Matt Faubion, CFPยฎ
A podcast that explores methods, strategies, and tactics to preserve and compound your wealth. I'm Matt Faubion, and I'm here to help you create your own wealth effect.
The path of interest rates has been highly uncertain over the past few years due to inflation, economic growth, and the Fed
So, in advance of The Fed's open market committee meeting and interest rate decision this week, I wanted to take some time and discuss the state of interest rates and the bond market in the current macroeconomic environment.
We discuss in this episode of The Wealth Effect Podcast:
๐ Improving inflation is supporting the bond market
๐ฆ The Fed is still expected to cut rates later this year
๐ Bonds can still provide portfolio balance
๐ to the episode: https://linktr.ee/faubwealth
thefed #interesrates #inflation #bonds #stocks #bonds #cash #economy #federalreserve #financialplanning #certifiedfinancialplanner #wealthmanagement #wealthstrategy #investment #investing #wealthplanning
As discussed last week in our mid-year investment themes, the stock market continues to hit new all-time highs. The S&P 500 has gained 19% year-to-date with reinvested dividends, contributing to a total return of 61% since the market bottom in 2022. While much of this performance has been driven by large-cap technology stocks over the past 18 months, there are now signs that other parts of the market are benefiting as well.
We discuss in this episode of The Wealth Effect Podcast:
๐ก๏ธ Performance is broadening beyond large-cap growth
๐ Growth and value can each outperform over long periods
โ ๏ธ Diversifying across styles helps to reduce portfolio risk
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2024 Faubvion Wealth Management LLC. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
5๏ธโฃ Investing Insights for the Second Half of 2024
As the second half of the year begins, how can investors maintain perspective around the strong market rally, interest rates, and the upcoming election?
Stay updated with our mid-year market analysis! Discover key insights on stock rallies, Fed rate cuts, inflation trends, bond market stability, and election impacts.
๐ to the full video: https://linktr.ee/faubwealth
stockmarket #stocks #bonds #cash #profits #corporateearnings #stockvaluation #equity #economy #banking #inflation #president #election #politics #federalreserve #interestrates #wealthmanagement #wealthstrategy #investment #investing #wealthplanning
After a historically strong start to the year, markets have been letting out some steam to start the second quarter. Geopolitical risks with Israel and Iran, higher for longer inflation, and angst heading into corporate earnings season have pushed the VIX stock market volatility index to its highest level in six months.
Over the weekend, tensions in the Middle East escalated due to an attack on Israel by Iran, the first time a direct attack between the two countries has occurred. The attack involved hundreds of drones and missiles launched from Iran. While itโs uncertain how Israel might respond, this is an unprecedented escalation in the region with one of our closest Allies.
We discuss in this episode of The Wealth Effect Podcast:
๐ก๏ธ Rising geopolitical tensions add to market volatility
๐ Sticky high CPI has markets rethinking rate cuts
โ ๏ธ How to always be prepared for market volatility
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2024 Faubvion Wealth Management LLC. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
2024 began in a similar fashion to 2023, with much debate over a soft or hard landing as the Fed attempted to fight inflation and stabilize the economy. Though substantially different than in 2023, in 2024, the debate shifted from the continuation of โ22sโ bear market to the sustainability โ23sโ ripping market rally.
Despite the above, with the next phase of monetary policy and the presidential election on the horizon, many investors are leery. These worries are only amplified by the marketsโ hovering near all-time highs.
We discuss in this episode of The Wealth Effect Podcast:
๐ S&P 500 New All-Time Highs
๐ S&P 500 Through Presidential Regimes
๐ Reflationary Monetary Policy
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2024 Faubvion Wealth Management LLC. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
"Look at that, look at that
Get your money for nothin'
Easy, easy money for nothin'"
- Money for Nothing, Dire Straits
At last week's post-Fed meeting press conference, Fed Chairman Jerome Powell gave forward guidance on the future path of the central bank's interest rate policy, messaging seemingly coming directly from the plot of an Orwellian novel or from an '80s British Pub Rock Band.
For those not baptized in the glory of Dire Straits or their song, Money for Nothing, this epic music video is well worth the 4 minutes and 38 seconds to become acquainted. Though, this must also come with a disclaimer: it's not a very P.C. song, and I'd advise that it is #NSFW.
Moving along, the Fed's decision to keep interest rates where they have been since July 2023 was expected, and so, too (by the markets) was the guidance for future interest rate cuts.
And as a consequence, we are being led down the path towards monetary easing (easy money) on the horizon, and hence why "Money for Nothing" has been stuck in my head since last Wednesday.
If they do cut rates with current inflation trends, it would be a monumental mistake, as U.S. and global economic growth is projected to reaccelerate through the end of this year.
We discuss in this episode of The Wealth Effect Podcast:
๐ฆ Inflation Infecting the U.S. Economy
๐ Fed Fund Futures
๐ Leading economic indicators
๐ Global economic activity
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2024 Faubvion Wealth Management LLC. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
In this episode, of the Husband and Wife Talk podcast, my wife (Jenna) and I were interviewed about how to balance finances in a relationship, how to communicate about money as well as when it is best to hire a financial planner.
We also discussed my entrepreneurial journey of quitting my last company in 2020 to start my own financial planning and wealth management firm, Faubion Wealth Management.
We shared lots of laughs and discussed some great financial tips and tricks, and we hope you enjoy it as much as we did!
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
My interview with Jacob Straub of Mission Driven Made, where we discuss long-term wealth building, financial literacy, financial freedom, and cryptocurrency. I'm also able to tell my entrepreneurial story of leaving the comfort of his job to start his own successful wealth management business.
It was a fun podcast, have a listen!
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
My Interview with Broc Buckles & Peter C. Ciravolo, the founders of BC Brokerage, on their Only Fee-Only Podcast pulling my entrepreneurial story out of me!
It was so awesome to get to talk about the different challenges and triumphs that come along with owning a business and serving clients at the highest level.
It was an absolute blast, have a listen!
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The stock market has been supported by a healthier-than-expected economy this year, generating returns that have helped many portfolios to partially recover from last year's bear market. Investors now hope these growth trends will translate into stronger corporate earnings since, in the long run, markets tend to follow the same trajectory as profits. With the economy's future still uncertain, what signs are there that companies might begin to see improved profitability?
We discuss in this episode of The Wealth Effect Podcast:
๐ S&P 500 Earnings Growth Rates
๐ต Corporate Profitability
๐ Sector Dividend Yields
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
While the holiday season is a time for family and friends, it is also the best time to review tax strategies for the coming year. Tax planning includes optimizing pre-tax and post-tax retirement plan contributions, stock option exercise optimization, Roth conversions, tax-loss harvesting, choices of investment vehicles and accounts, optimizing the order of withdrawals, and many more.
Given the complexity of these tax considerations, it's vital to work with a trusted wealth manager to best understand each approach and its implications. It's also essential to understand the economic climate's effect on taxes, especially the impact of inflation. Along those lines, recent federal rule changes have been announced that investors should be aware of ahead of the new year 2024.
We discuss in this episode of The Wealth Effect Podcast:
๐ Inflation-Adjusted Tax Brackets
๐ต 2024 Retirement Plan Limits
๐ Consumer Inflation Expectations
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
There's a common saying among investors that markets take the stairs up and the elevator down. This is because the long-term trends that drive markets higher tend to be slow-moving and compound over time, whereas the events that create short-term panic tend to be sudden and unexpected. For investors, understanding this dynamic in the current environment is critical to staying focused on important financial goals.
We discuss in this episode of The Wealth Effect Podcast:
โ ๏ธ Bond Market Volatility
๐ U.S. Labor Market
๐ฆ Expected Monetary Policy
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The author F. Scott Fitzgerald once wrote that "the test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function." This concept, often referred to as "cognitive dissonance," is something all investors must continually grapple with. This is because financial markets can swoon seemingly without reason and, in the worst case, in a way that appears to contradict underlying fundamentals. In these situations, investors can either try to justify these market swings or recognize that they are likely to be temporary. How is this relevant to investors in today's market and economic environment?
We discuss in this episode of The Wealth Effect Podcast:
๐ Magnificent 7 Stock Returns
๐ Q3 GDP Growth Components
๐ Stock Market Pullbacks
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The strength of consumer spending and household balance sheets has been a bright spot in an otherwise challenging market and economic environment. These factors have helped to keep the economy out of recession and have bolstered corporate earnings, but they have also kept inflation hotter than the Fed might otherwise like, resulting in higher interest rates. What should investors know about the state of consumer finances as market and economic uncertainty continues?
We discuss in this episode of The Wealth Effect Podcast:
๐ Household Net Worth
๐ธ Consumer Spending Rates
๐ Personal Savings Rates
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
While war escalates in the Middle East, a political battle is also heating up in Washington. As of this writing, there is still no House speaker in Congress after Kevin McCarthy's exit and Steve Scalise's withdrawal over the past two weeks. While several Republican and House votes are scheduled to attempt to resolve this leadership vacuum, more political hurdles are on the horizon. This only complicates the market and economic environment for investors already navigating higher interest rates, Fed uncertainty, stock market volatility, and more. What can investors do to keep politics in perspective as the situation in Washington evolves?
We discuss in this episode of The Wealth Effect Podcast:
๐ The Federal Debt to GDP
๐ธ Federal Govt. Interest Payments
๐ Stock Market Returns and Political Parties
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
As the final quarter of the year begins, markets are grappling with rising interest rates, reaccelerating inflation, and continued economic uncertainty. These factors led the S&P 500 to decline 3.3% (with reinvested dividends) during the third quarter, while the U.S. Aggregate bond index lost 3.2%. These issues echo the many concerns investors faced last year when inflation and higher rates resulted in a bear market. Other factors, including the narrowly averted government shutdown and cracks in China's economy, have also added to investor fears. Amid the seemingly constant stream of negative headlines, how can we prepare for the final months of the year?
We discuss in this episode of The Wealth Effect Podcast:
๐ Stock and Bond Market Returns
๐ Real Interest Rates at 16-year Highs
๐ GDP Growth Stronger Than Expected
๐ฆ Monetary Policy Higher for Longer
๐๏ธ Investors Have Control Over Financial Outcomes
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The corporate earnings season for the first quarter is nearly complete, and investors appear focused on these earnings announcements even more than usual due to ongoing economic uncertainty amid high inflation, slower growth, and the banking crisis. In this context, corporate profitability can shine a spotlight on how companies, sectors, and the broader economy are truly faring in this environment. Further, focusing on earnings trends is a way to cut through the day-to-day noise of the stock market and news headlines.
We discuss in this episode of The Wealth Effect Podcast:
๐ The Stock Market & Earnings
๐๏ธ Sector Earnings & Valuations
๐งฎ Stock Market Valuation Measures
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The repercussions of inflation, Fed rate hikes, the ongoing banking crisis, and the approaching debt ceiling deadline are cascading throughout the financial system. One area directly impacted by these shocks is real estate across both the residential and commercial sectors. Commercial real estate (CRE), in particular, is highly dependent on regional and smaller banks, including those that have struggled or failed since early March. Some investors and economists are concerned about what this might mean for the broader economy in the coming months.
We discuss in this episode of The Wealth Effect Podcast:
๐ข Commercial Real Estate Performance
๐ก Residential Real Estate Performance
๐ฆ Fed Rate Hike Cycle
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The federal debt limit is once again in the news as the country rapidly approaches a critical deadline on June 1. Investors are understandably nervous about Washington failing to reach an agreement, a possibility that both sides agree would be a self-inflicted catastrophe. While it's unclear how this will play out in the coming weeks, the fortunate news is that financial markets are mostly taking these events in stride. How can investors maintain the right perspective around political and fiscal uncertainty?
We discuss in this episode of The Wealth Effect Podcast:
๐ Federal Deficit to GDP
๐ Treasury Yield Curve
๐ Federal Tax Rates
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, accounting, and financial professionals if you want more information. This content is developed from sources believed to be providing accurate information, and provided by Copyright (c) 2023 Clearnomics, Inc. All rights reserved. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Monday morning, it was announced that the FDIC had taken over First Republic Bank and sold it to JPMorgan Chase. Eleven major banks had previously infused First Republic with $30 billion in deposits to stabilize the bank after the failures of Silicon Valley Bank, Signature Bank, and Credit Suisse. This process found new urgency over the past week when First Republic revealed that uninsured deposits at the bank fell $100 billion in the first quarter. So, this deal has been in the making for several days, with a few large banks bidding on First Republic's deposits and assets. With ongoing banking turmoil creating market and economic uncertainty, how can long-term investors navigate the months ahead?
We discuss in this episode of The Wealth Effect Podcast:
๐ฒ FDIC Bank Failure Losses
๐ Financials Sector Performance
๐ U.S. GDP Growth
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The U.S. dollar has been in the headlines due to an anticipated pause in Fed policy and concerns over the currency's place in the global financial system. However, to borrow Mark Twain's famous line, reports of the dollar's death are greatly exaggerated. While the role of the dollar has declined by some measures over the past two decades, fears of the dollar's demise are not new among investors and economists. What does the dollar's role mean for investors going forward?
We discuss in this episode of The Wealth Effect Podcast:
๐ฒ U.S. Dollar Index (DXY)
๐ Global Bank Reserve and Trade Weightings
๐ฆ Currency Impact on Asset Class Performance
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
There is an old saying that happiness equals reality minus expectations, and this is particularly relevant when it comes to financial planning and investing during times of great uncertainty. For investors, having unrealistic short-term expectations of investment returns and financial outcomes, as many often do in the late stages of bull markets and during asset bubbles, can lead to discouragement. Instead, history shows that by maintaining perspective and focusing on aspects within their control, investors can set appropriate expectations and position themselves to achieve financial goals.
We discuss in this episode of The Wealth Effect Podcast:
๐ข๏ธ Global Oil Prices
๐ U.S. Unemployment Rates
๐ฆ Future Federal Funds Rates
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The banking crisis that began in the U.S. has now spread to Europe. Recent concerns over the solvency of Credit Suisse, Switzerland's second largest "global systemically important bank" (G-SIB), were due in no small part to the runs on U.S. banks. What made Credit Suisse vulnerable was that reputational and financial difficulties had plagued it over the past decade, including problems with its financial reporting, exposure to the failed companies Archegos and Greensill, and a criminal conviction over money laundering, to name a few. At the time of writing, UBS has agreed to buy Credit Suisse in a $3 billion deal brokered by regulators, hearkening back to JPMorgan's takeover of Bear Stearns in 2008. The situation is still evolving, and in the U.S., regulators continue to monitor banks for signs of contagion.
We discuss in this episode of The Wealth Effect Podcast:
๐ U.S. Vs. Euro Bank Stock Performance
๐ Global Central Bank Balance Sheets
โ๏ธ Weighing Risk Management & Opportunity Cost
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The recent failure of three U.S. banks has raised concerns over the economy and financial system. The situation is still evolving, and there is plenty of speculation about what might come next. One recent development is that government officials from the Treasury, Federal Reserve, and FDIC have announced that depositors will be made whole in an effort to backstop the system and restore confidence. This crisis has already created hardship for many companies and individuals as payrolls are disrupted and access to cash is halted. However, when it comes to investing, it's more important than ever to stay levelheaded and focus on the big picture. What should long-term investors know about these bank failures, and what do they reveal about the financial system?
We discuss in this episode of The Wealth Effect Podcast:
๐ Financial Sector Performance
๐ Bank Unrealized Investment Losses
๐ FDIC Bank Failures
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The U.S. population, like those of many developed countries, is aging. According to the latest Census figures, a major shift occurred over the past two decades in which the share of the population under 50 declined, especially among those of prime working age. Even the youngest baby boomers are nearing retirement age, while the oldest are almost 80. And while millennials have come of age and now outnumber boomers, that hasn't been enough to prevent the average age in the U.S. from shifting from 35.4 in 2000 to 38.8 today. What could these trends mean for the economy and markets in the future?
We discuss in this episode of The Wealth Effect Podcast:
๐ U.S. Population Distribution
๐งฎ U.S. Life Expectancy
โ๏ธ Balancing Portfolio Risk & Reward
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ What Slumping U.S. Economic Indicators and Growth Mean for Investors
Stock market volatility has once again picked up as recent economic data have led markets to reverse course after a strong start to the year. While investors have grown accustomed to daily swings, it's still important to remember that stock market fluctuations are unavoidable. After all, it's the willingness and ability to withstand pullbacks in the short run that allows investors to be rewarded in the long run. During periods of uncertainty, understanding the underlying trends driving markets can help investors to maintain perspective.
We discuss in this episode of The Wealth Effect Podcast:
๐ Leading Economic Indicators
๐ญ Manufacturing Economic Activity Indices
๐ Stock Market Volatility
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ตโ๐ซ Why Investors Are Feeling Dรฉjร Vu Around the Fed and Inflation
For investors, it may feel like dรฉjร vu all over again as inflation and the Fed dominate market headlines on a day-to-day basis. After all, driving the numerous market swings last year were the ever-changing expectations around the Fed - both when investors believed the Fed was doing too little, and when they thought the Fed was tightening too much. With markets once again concerned about the direction of the Fed, what do investors need to know about how the story is evolving?
We discuss in this episode of The Wealth Effect Podcast:
๐ Core Services Inflation
๐ Consumer Price Index Components
๐ Fed Funds Futures Implied Rates
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ผ How Layoffs and Falling Consumer Spending Affect the Macro Economy
Layoff announcements are ramping up as companies adjust to slowing sales and profitability. So far, significant job cuts have been concentrated in technology and consumer-related industries due to overhiring during the pandemic recovery when demand was extreme. Whether this spills into the broader economy is the subject of debate among investors and economists. With markets already expecting a mild recession in 2023, how should long-term investors maintain perspective on this topic over the next year?
We discuss in this episode of The Wealth Effect Podcast:
๐ GDP Growth Components
๐ผ Job Gains by Sector
๐ Household Debt Service Levels
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ Why Allocating To Bonds Is More Attractive in 2023
Last year, the bear market in bonds shocked markets and raised questions about the role of fixed-income securities in portfolios. The primary driver of this was, until 2021, inflation had been steadily falling for 40 years, pushing interest rates lower and bond prices higher. This period supported the idea that bonds act as a stable foundation for portfolios, counterbalancing the price swings in stocks and other riskier assets. Naturally, with both stocks and bonds falling last year, many investors may wonder if they need to rethink the role of fixed income in their portfolios.
We discuss in this episode of The Wealth Effect Podcast:
๐ Fixed Income Sector Performance
๐ Current Bond Yields
๐ Corporate Bond Market Spreads
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ญ Political Theater - The Debt Ceiling Drama
Over the past week, there has been nonstop news coverage of the federal government hitting the $31.4 trillion borrowing limit known as the debt ceiling. Once again, Washington drama is on center stage as the Treasury Department enacts "extraordinary measures" to not default on its obligations. Although this has become a regular occurrence, many investors are still understandably nervous. While it's unclear how this will play out politically before the estimated June 5 deadline, the fortunate news is that financial markets have taken these events in stride. How can investors maintain perspective around the fiscal uncertainty despite the political theater?
We discuss in this episode of The Wealth Effect Podcast:
๐ Federal Debt-to-GDP
๐ฆ Federal Budget Deficits
๐ Owners of U.S. Treasuries
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ How The Old Buy-The-Dip Playbook Is Dated And Dangerous
Economic uncertainty continues to affect financial markets, as it rightfully should, since, in the long run, stock prices follow trends in economic growth. Investors are wondering how high interest rates might rise, whether there will be a deep recession (or if we're in one already), when inflation might begin to recede, and if unemployment will tick up, to name a few. Unfortunately, speculation on these issues and how the Fed might react is widespread and has put the market on edge, resulting in sizable swings in both directions.
These market rallies and pullbacks have been driven by alternating hopes and fears around the Fed taking its foot off the brake pedal - so far, to no avail. Over the last few decades, many investors have been conditioned that "buying the dip" pays and that impulse is still there (old habits die hard), causing large counter-trend rallies. However, this playbook is proving to be dated and dangerous in this new regime of high macroeconomic uncertainty, financial market volatility, inflation, and interest rates.
Where do market expectations stand today, and how can investors avoid playing the guessing game driving markets?
We discuss in this episode of The Wealth Effect Podcast:
๐ Future Economic Projections
๐ฆ Major Global Central Bank Policies
๐ S&P 500 YTD Sector Return
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
How Q3 GDP Keeps The Fed Stuck Between A Rock And A Hard Place
Major stock market indices have rebounded in October as investors hope for a slowdown in the pace of Fed rate hikes. As of Friday, October 28, the S&P 500 had gained 8.8% over the month, and its year-to-date loss was cut to 18%, just slightly better than bear market levels. The Dow is now above correction territory with a 9.6% year-to-date decline, while the Nasdaq, consisting of hard-hit tech stocks, gained 5% in October to reach a year-to-date pullback of 29%. This occurred despite a jump in interest rates, with the 10-year U.S. Treasury yield rising above 4%. What's driving market optimism, and how should long-term investors maintain perspective?
We discuss in this episode of The Wealth Effect Podcast:
๐ Quarterly GDP Growth Rates Since WWII
๐ Components of GDP Growth
๐ Market Implied Future Fed Funds Rates
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ฌ๏ธ How Recession Risk Is Rising Through Headwinds To Corporate Earnings
It's no secret that this year has been characterized by market and economic uncertainty due to inflation, monetary policy, and geopolitics. Prolonged market unease can be attributed to the fact that these economic effects take time to evolve. Inflation is not an overnight event but the result of supply and demand factors since 2020, compounded by monetary and fiscal policies. As mentioned last week, the effects of tightening monetary policy by the Fed are realized on a significant lag. The spike in energy and commodity prices due to the war in Ukraine will not be resolved quickly. Political events in China, the U.K., and the upcoming U.S. midterm election only add to this uncertainty. These facts underscore the need for investors to focus on the long run and resist the urge to react to every market movement, whether positive or negative.
We discuss in this episode of The Wealth Effect Podcast:
๐ The Linkage of Corporate Earnings and Stock Prices
๐งฎ Stock Market Sector & Style Valuations
๐ต The Impacts of a Strong U.S. Dollar
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
โ๏ธ Rising Inflation And Interest Rates Are Creating A Reverse Wealth Effect
The latest inflation numbers confirm that the prices of everyday goods and services are still rising despite Fed rate hikes and a slowing economy. Major stock market indices continue to be in or near bear market levels, with the S&P 500 down 25% year-to-date, while interest rates jumped further last week, with the 10-year Treasury yield rising above 4%. Whether the Fed can regain control of inflation while keeping the economy steady remains the central question for investors and economists. Since inflation data is only released monthly, GDP data quarterly, and the Fed only meets once every six weeks, it could be some time before this question is fully answered.
We discuss in this episode of The Wealth Effect Podcast:
๐ฆ Historical Interest Rate Cycles
๐ The Yield Curve & Leading Economic Indicators
๐ Mortgage Rates and Residential Real Estate
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ป Back to Bear - How To Avoid Behavioral Mistakes During Bear Markets
Global markets pulled back again last week following the Fed's announcement that it would tighten by another 75 basis points and keep rates higher for longer. Major indices are back to their June bear market lows, with the S&P 500 falling 23% year-to-date and the Nasdaq down 31%. Bonds have also struggled as all interest rates across the inverted yield curve have jumped, with the 2-year Treasury yield rising to 4.2% and the 10-year to 3.7% - the highest levels since 2007 and 2010, respectively. Investors have been navigating this challenging market all year, and, for many, it may feel as if there is no relief in sight. How can investors see beyond recent market swings and short-term headlines to achieve long-term financial goals?
We discuss in this episode of The Wealth Effect Podcast:
๐จ Investor Sentiment
๐ข Stock Market Bull & Bear Cycles
๐ป Bear Markets & Recoveries
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ Yield Curve Inversion - What Is It and Why Does It Matter?
The market recovery has hit a bump due to uncertainty around interest rates and the Federal Reserve. Interest rates have driven markets all year with significant impacts on risk assets, economic growth, the housing market, energy costs, and the value of the dollar and foreign currency exchange rates. In an environment like this, market expectations matter just as much, if not more, as the actual numbers.
We discuss in this episode of The Wealth Effect Podcast:
๐ย Yield Curve Inversion
โย Future Interest Rate Expectations
๐๏ธย The Softening Housing Market
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ How to Reduce Home-Country Bias by Investing in Global Opportunities
As challenging as international investing has been over the past several years, it has also never been more critical. While developed and emerging markets may be more susceptible to economic shocks, geopolitical instability, and factors such as the pandemic, this is also why they may have higher expected returns in the long run. Investing across geographies, especially when valuations are attractive, is a vital way to improve diversification as the global economy recovers from recent energy and inflationary shocks. How can investors maintain perspective around international investments today?
We discuss in this episode of The Wealth Effect Podcast:
๐ Relative Asset Class Returns
โ๏ธ Weighing Global Equity Valuations
๐ฑ Major Global Currencies
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ธ Inflation Inflection 2.0 - With Easing Inflation, Will The Fed Pivot?
Investors and economists have breathed a sigh of relief as new inflation data suggest that price pressures are easing. While the prices of everyday goods are still significantly higher than a year ago, some of the underlying trends are beginning to reverse. This is largely in line with our Inflation Inflection note earlier this year that inflation would likely start to ease come the summer months.
Stocks have rallied as markets price in hopes the Fed will pivot soon. The S&P 500 and the Nasdaq have now gained 16.7% and 22.6%, respectively, since the middle of June when oil prices peaked and the Fed began accelerating its rate hikes to fight inflation. But weโre not chasing the rally. Why? We view market expectations for a dovish pivot as premature and that a pivot will come later as the Fed is now responding to pressure to tame inflation.
We discuss in this episode of The Wealth Effect Podcast:
๐ Inflation Measures
๐ฝ Food Cost Drivers
๐ก๏ธ Consumer Sentiment & Inflation Expectations
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ญ How To Think About Job Gains, the Budget Deficit and Inflation Policies
As the economy slows, some investors are worried about the possibility of a recession and the long-term consequences of ever-growing government debt. These concerns are timely due to recent economic data and policy decisions, including the Inflation Reduction Act making its way through Congress.
We discuss in this episode of The Wealth Effect Podcast:
๐ Job Market Gains Since 2020
๐ Federal Budget Deficit to GDP
๐ย Holders of U.S. Treasuries
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ถย Mixed Signals - How To Best Decipher The Latest Market and Economic Data
The economy shrank in the first half of 2022 due to factors such as inflation and rising rates. What does this mean for long-term investors?
We discuss in this episode of The Wealth Effect Podcast:
๐ Quarterly GDP Growth Rates
๐ Breaking Down GDP Components
๐ The Stock Market Reaction
Show Notes
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
7 Charts And Insights For 2H22
As we enter the second half of the year, investors continue to grapple with inflation, higher interest rates, the Fed, and the prospect of a recession. If historical bear markets are any indication, investors' decisions during this period will have long-lasting effects on their portfolios. Resisting the temptation to overreact to daily market swings, dwelling on the past, and losing sight of bigger factors has never been more critical. While it's difficult to imagine a market recovery today, more than a century of market history suggests that they can occur when investors least expect. Investors should consider what will matter to markets over the next several months as they position for the years and decades ahead.
We discuss in this episode of The Wealth Effect Podcast:
๐ Stock and Bond Market Returns
๐ธ CPI Inflation
๐งฎ Stock Market Valuations
๐ฆ Tightening Monetary Policy
๐ฐ The Value of Cash
๐ The Benefits of Diversification
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ฐ How To Cut Through The Noise Of Economic And Business News Headlines
We are set for the release of a ton of economic and business data this week, U.S. consumer confidence, U.S. Q2 GDP, Euro Area inflation & Q2 GDP, U.S. personal consumption expenditures, consumer spending, and a slew of major corporate Q2 earnings reports such as Apple, Alphabet, Amazon, and Microsoft. However, the spotlight will be on The Fed's interest rate decision and press conference on Wednesday. Heading into this week, many leading economic indicators suggest that growth is decelerating due to rising prices, geopolitical events, and the natural deceleration to a strong recovery.
We discuss in this episode of The Wealth Effect Podcast:
๐ธ U.S. GDP, Money Supply, and Velocity of Money
๐ The Dollar And Major Global Currencies
๐ Yield Curve and Leading Economic Indicators
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ธ Inflation Inflection - Why The Market Is Likely Wrong On Inflation
We've been writing for some time now about how inflation was going to ramp higher and faster than most were anticipating as the economy reaccelerated out of the pandemic-induced recession. Our original post in August of '20 laid out the foundation and argument for a new inflation paradigm, and the last years', and few months' in particular, inflation data has corroborated this view. Last weeks' inflation data came in hotter than expected at 7.5% year-over-year for January, vs. 7.2% consensus estimates. It seems that many market participants, including the Federal Reserve, are playing catch-up.
We discuss in this episode of The Wealth Effect Podcast:
๐ธ Consumer Price Index Inflation
๐ Yield Curve Inversion
๐Inflation Fighting Beneficiaries
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
๐ Priced For Perfection - That's So Meta
One of the largest single value destruction events occurred in market history. As a result, many investors might be asking why, or even how, did this happen?
We discuss in this episode of The Wealth Effect Podcast:
๐ Meta's stock plunge
๐ FAANG stock performance
๐ Stock market concentration
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
Show notes and charts
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Many may know, but for those who do not, I was a collegiate Lacrosse player at San Jose State, and I had a short stint of playing international Lacrosse for the Irish National Team in the European Lacrosse Championship. I've always been fascinated by the lessons learned in sports and their application to personal and professional life. A common adage in Lacrosse is for defenders to watch their opponent's waist and hips, not their hands or stick. Focusing on where the motion of a dodge begins, rather than where it ends, allows you to react appropriately and accurately.
And with investing, this principle applies aptly to portfolio management - as in, it's better to focus on the economy and long-term trends that drive markets and policy rather than solely on outcomes such as Fed decisions or past returns - i.e., where we've been. In other words, the best way for investors to position their portfolios today is to understand better where we are in the business and market cycles - i.e., where we are and where we are going.
We discuss in this episode of The Wealth Effect Podcast:
CONTACT
Matt Faubion, CFPยฎ
Founder - Wealth ManagerFaubion Wealth Management
Show notes and charts
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Last week the Bureau of Labor Statistics reported that the year-over-year increase in the CPI (Consumer Price Index) came in at 4.2%, which according to the Wall Street Journal, was the most significant increase in the price index since the summer of 2008. This report has injected further concern for a central issue for many investors - inflation.
Prices are rising for some everyday goods and services as well as for essential commodities. The fastest increases in decades could threaten growth in certain sectors, impact household spending, and affect the value of savings and investments. These concerns will only grow as the economy returns to pre-pandemic levels. What perspective should long-term investors have on inflation as business activity accelerates? As written previously, are we entering a New Inflation Paradigm?
We explore in this episode of The Wealth Effect Podcast.
CONTACT Matt Faubion, CFPยฎ
Founder - Wealth Manager
Show Notes
As with many things in life, investing is often about managing expectations on the economy, markets, and portfolio returns. Doing so can be challenging since substantial market gains, and solid economic growth can fuel even greater and eventually unrealistic expectations - leading to F.O.M.O.ย
In this episode, we discuss the latest market and economic backdrop and new investing zeitgeist - Keeping a sober-eyed view during the current Wall Street Bets/Robinhood/Retail investor craze.ย
In this episode, I discuss the 5 wealth considerations that all tech professionals should make before the end of the year.
There are 5 top takeaways from Blackrock's "Making sense of the 2020 U.S. Election" webinar recorded today, November 4th, 2020. I review them and discuss the potential implications of each as we head into the end of 2020 and into 2021.