A Registered Investment Advisor

Fed Stands Pat for Another Meeting

Checking in with all of you after the session on Thursday afternoon, the 17th of September.  We made it through yet another Fed meeting today without an interest rate increase.  Many economists felt that we were due for a rate increase this time around.  They were wrong.  Some cite global turbulence and inflation data here in the US as reasons why a rate hike is not in order at this time.

How did the stock market react?  In volatile trading today all the major indexes were up more than 1% for a time, until falling back and finally losing ground by the closing bell.  The Dow was off 65.21 points or .39% by the end of the trading day.

As I have continued to preach - I believe we are in for a tough go ahead for the next several months yet.  The looming presidential election season, the serious problems in the Chinese economy, the unrest in Europe, and only marginal job growth in the US are all reasons to proceed with caution.

For the first time since June of 2010 all S&P 500 sectors performed more poorly than "cash" as an asset class in the month of August.  This was a signal for me to take more money off the table.  This means that for the month of September those that are hiring me to manage their portfolios through Trust Company of America are sitting on more cash than usual.  I am waiting patiently for a trend to develop so we can invest appropriately going forward.

As always - if you are concerned or just ready for a review, please call and we will get it scheduled.  I have seen a significant influx in referrals through this recent market volatility and I thank you for sharing my name with your friends and loved ones.  Have a great weekend.

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