September 1, 2023
August saw the equities markets give up some ground as interest rates continued to climb. Although the Federal Reserve believes the strategy is working to cool inflation, significant results have yet to manifest themselves. The Fed’s challenge will be to slow the economy enough to bring down demand and inflation without stalling it out completely and having it slip into a recession. Although a recession affects everyone to a certain extent, it is particularly tough on people with limited means and no savings.
After chairman Powell's speech in Jackson Hole on August 25th many believe that another rate hike in September is unlikely, but an additional rate hike in November is more likely. Our view is that the Federal Reserve would need to see data indicating greater GDP growth or labor markets that are no longer cooling to justify additional rate hikes. If the economy continues to weaken from here and wage and price inflation continues to trend lower, the Fed might remain on hold for several sessions.
Over the Labor Day weekend the TD Ameritrade and Schwab merger will be completed. We will be sending out our performance reports as usual on September 1st. Account information will not be available on TD Ameritrade’s Advisor Client site or Charles Schwab’s Schwab Alliance site from September 2nd through September 4th. You will still have access to all your account information on our MFFM Client Portal. We sincerely appreciate your patience and consideration as we work through this transition. If you have any questions, please feel free to email or call us.
We are also pleased to announce that Jennifer C. Sheffler, has attained her CFP® certification, and has been authorized by CFP Board to use the CERTIFIED FINANCIAL PLANNER™ and CFP® certification marks. Since 2019 Jennifer has been an integral part of our firm and building a more robust process and holistic planning approach to the financial advice, we offer clients. Feel free to contact Jennifer directly if you have friends and family who are interested in more information about our firm. Jennifer’s direct number is 561-252-7778 or email her at jennifer@mffm.com.
The yield on the 10-year Treasury note stands at 4.12%, while the yield on the two-year Treasury is at 4.90%. Year to date all the major indices are in the black with the Dow, S&P 500, and NASDAQ at 4.75%, 17.40% and 34.09% respectively.
*Disclaimer: This report is a publication of Marchand Faries Financial Management, Inc. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgement of the author as of the date of publication and are subject to change.
