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Market Update: Markets and the Economy Are Sometimes Out of Sync

Apr 28, 2023

• The U.S. economy grew 1.1% annualized in the first quarter, the third consecutive downshift in quarterly growth.
• Consumers started the year on strong footing as spending on both goods and services added to headline growth. But higher frequency data tell us that consumers have started to slip.
• The biggest drag on overall growth was a decrease in inventories as businesses prepared for weaker demand in the latter part of this year. The good news is if the economy does slide into recession, businesses will not likely have bloated inventories during a downturn in demand.
• The backward nature of the GDP report is possibly misleading for markets as we know consumers were still spending in January, but since March they have pulled back as they get more pessimistic about the future. The latest consumer confidence report corroborates that thesis.
• Bottom Line: The U.S. economy is likely at an inflection point as consumer spending has softened in recent months. The data is setting the Federal Reserve (Fed) up nicely for next week’s meeting. (more…)

Tags: Current Events

An Introduction to Estate Planning

Apr 26, 2023

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Tags: Estate Planning, Family Wealth, financial advisor, financial advisor charlotte nc, Long-Term Care Planning, Personal Finance, retirement, Retirement Planning

Market Update – An Economy with a Backache

Apr 19, 2023

• Small businesses, considered the backbone of the economy, are shrinking hiring plans. Hiring intentions among small businesses declined in March, implying that upcoming job reports will likely be lackluster.
• Firms are hunkering down as virtually no firms have plans to expand business operations. In fact, the number of firms reporting any expansion plans is the lowest since early 2009 when the economy was in the depths of the Great Financial Crisis.
• Small businesses are reporting more difficult access to credit. The percent reporting tighter credit is the highest since 2012 as lending institutions tighten up under the uncertainty of the macro landscape.
• Now, some good news. Inflation was less of a problem in March as firms are more concerned about the overall business environment as the economy slows under tighter financial conditions.

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Tags: Certified Financial Planner Charlotte NC, charlotte NC, Current Events, financial advisor, financial advisor charlotte nc

Building a Healthy Financial Foundation

Apr 17, 2023

When you read about money matters, you will sometimes see the phrase, “getting your financial house in order.” What exactly does that mean?  When your financial “house is in order,” it means it is built on a solid foundation. It means that you have six fundamental “pillars” in place that are either crucial for sustaining your financial well-being or creating wealth. (more…)

Tags: financial advisor charlotte nc, Financial Planning, Personal Finance, retirement, Retirement Planning, Retirement Tax Savings, Tax Planning, Wealth Building

Market Update – 6 Things to Know About Stocks and Recessions

Apr 14, 2023

 

Yesterday, the Federal Reserve (Fed) released the minutes from its March 21-22 Federal Open Market Committee (FOMC) meeting. In the section summarizing staff projections, to the surprise of some, the staff explicitly forecasted a recession: (more…)

Market Update – A Resilient March

Apr 10, 2023

The financial markets’ resilient performance during March was striking, despite pockets of uncertainty surrounding the strength of the economy—and not to mention concerns over the durability of the banking system. The ability of the market to navigate nearly two weeks of headline-related risk tested the underlying resolve of the market’s capacity to look ahead. (more…)

Tags: Current Events, financial advisor charlotte nc

Market Update – Main Takeaways from the Business Report

Apr 5, 2023

• Manufacturing activity last month fell to its lowest since May 2020, as recession fears loom in front of businesses and consumers alike.
• Employment shrunk for the second month as firms cut workers in response to weaker demand. The decline in jobs is a harbinger of a weaker job market in the months ahead.
• Prices paid by factories declined in March and align with the latest reading from the Federal Reserve’s (Fed) preferred inflation gauge released last week.
• Bottom Line: The main takeaway from this report is the job market is slowing so investors should prepare for a weaker job market, higher unemployment, and cooling wage growth in the months ahead. A cooler job market should release some of the inflationary pressure the Fed is working hard to conquer.

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Market Update: Three Takeaways from the Fed Decision

Mar 27, 2023

Overview

• As we expected, the Federal Reserve (Fed) raised the fed funds rate by 0.25%, pushing the upper bound to 5.00%.
• Financial conditions were stable enough for the Federal Open Market Committee (FOMC) to release updated projections, unlike the Fed’s decision back in March 2020 to delay updated projections due to financial instability.
• Yesterday, the Committee was unanimous in their decision, creating an aura of calm for markets.
• Financial stability is clearly a vital factor in future decisions, but as of now, the Fed will likely hike at least one more time at the May meeting.
• Tighter credit conditions translate into equivalent rate hikes. Therefore, the Fed can rightly soften their language that additional policy firming may (or may not) be appropriate.

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Tags: Current Events

Healthcare Costs are Cutting into Retirement Preparations

Mar 22, 2023

 

You may have seen this statistic before or one resembling it: the average 65-year-old retiring couple can now expect to pay more than $250,000 in healthcare costs during the rest of their lives.

In fact, Fidelity now projects this cost at $285,000. The effort to prepare for these potential expenses is changing the big picture of retirement planning.

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Tags: Employee Benefit Planning, Health Care Needs, Health Care Savings, retirement, Retirement Planning

Digital Assets Estate Strategy

Mar 20, 2023

When you think about your estate, you may think about your personal property, real estate, or investments. You also have other, less-tangible assets – and they deserve your attention as well. We consider these your digital assets. A digital footprint of your life – and you need to consider them within your estate planning. (more…)

Tags: Certified Financial Planner Charlotte NC, Estate Planning, Family Wealth, financial advisor charlotte nc, Financial Planning