October 2, 2023

In a world full of big financial jargon and complex trends, here’s your fun-sized update for September 2023. We’re touching on everything from bonds and stocks to the Federal Reserve’s moves and, wait for it… potatoes! 🥔

  • Fed Could Make a Move: The cautious market thinks the Federal Reserve might raise interest rates again in November. We are cautious too; the market’s guess isn’t always the Fed’s game. Nevertheless, many analysts are hopeful that the Fed will successfully guide us through a soft recession without too much trouble.
  • Economic Cycles and Your Investments: Different assets perform differently depending on the economy’s phase, and for the foreseeable future, quality dividend payers and US Treasuries are looking good. Knowing where we are in the cycle is helpful, even if investing for the long-term.  Maintaining situational awareness helps us to fine tune our outlook as we go.
  • Stocks & Bonds – The Relationship Status is Complicated: Historically, when real yields are high, stocks and bonds do their own thing—great for diversification. We have waited decades for this, and with yields expecting to remain higher for longer, our analysts have more options available to manage portfolio risks.
  • Bonds Are Tempting but Tread Carefully: Although real yields on bonds have hit a high not seen since the Worldwide Financial Crisis of 2008, these yields might see their returns eroded by high inflation. On the bright side, we have seen inflation growth rates slowing.  Furthermore, tech innovations like Artificial Intelligence are helping to slow down inflation, making things cheaper at scale.
  • Double or Triple Your Money: The Rule of 72 and The Rule of 115 are quick ways to estimate how long it will take to double or triple your money, based on your average annual return. This is based on compounding interest; an investment with a 5% return will double in 15 years, and triples in 23 years. Just don’t forget to stay the course and pay your taxes.

Fun Fact – Potatoes Are More Than Just Tasty: Here’s a surprising tidbit for you – the global potato market is expected to reach $132.81 billion by 2027 with an annualized growth rate around 3.5%.  While it’s not exactly investment advice, it reminds our analysts to keep looking for fresh new investment ideas!

So, there you have it—a quick look at everything from bonds to potatoes.  Always remember to remain diversified and call us if you have any questions!

*The rule of 72 and the rule of 115 involve compound illustrations and are not predictions of investment performance. Investment principal and interest are not guaranteed and are subject to market fluctuation.

**The information provided here is intended to be educational and opinions presented are for general information purposes only and are not intended to provide specific advice or recommendations for any individual.