Last week I tried to provide some calm perspective on the recent fluctuations in the markets. Again, in summary: the corrections we’re experiencing right now are perfectly normal, and not nearly as scary as some of the headlines would have you believe.
One of the main factors that’s contributing to this volatile October is the pace and expected duration of the Federal Reserve’s current rising interest rate cycle. As you probably read, President Trump wasn’t very happy with the Fed, and a lot of folks on Wall Street weren’t either. So why the rate increase? If our economy is on track for yet another positive year, why did the Fed make an adjustment that tends to spook investors and slow things down?
On today’s show, we’re following up on last week’s news to break down how changing interest rates affect the economy and various investment vehicles. Hopefully this discussion will help folks understand what the Fed’s move really says about where the US economy is as 2018 draws to a close.
As much as we caution investors against making knee-jerk reactions to the news, your investments and your long-term planning don’t exist in a vacuum either. That’s why when I attend conferences like the Barron's Top Independent Advisors Summit or the Schwab Impact Conference, I like to come back with a report that I think will be beneficial to my clients and listeners. It’s just another way that we at Keen Wealth try to give the folks we work with a comprehensive financial-planning experience.
Matt Wilson and I recently travelled to Washington, D.C. for a series of briefings organized by my friends at CEO Coaching International. And yes, on the one hand, it seems like the tumult in Washington and the coming midterm elections could have serious implications for things like tax planning, estate planning, and even health care. But I also came away from these discussions feeling a bit more hopeful about our country’s politics than I have in quite some time, and I remain bullish on our economic outlook for the rest of the year.
On today’s show, I invited CEO Coaching International’s Chris Larkins to give his own perspective on what we learned in D.C. In addition to being a successful entrepreneur and CEO coach, Chris has a comprehensive political background. His expertise helps us cut through the noise that’s been clogging our TVs and social media streams and delivers solid, practical insights on the state of our politics and economy.