This monthly communication, “Financial Bullet Points,” will quickly and easily cover the main financial issues we see affecting the markets without being bogged down with a lot of details.
Written by Bob Barber
This is the second month we’re bringing “Financial Bullet Points” to you, our clients. These monthly 2-3 minute videos quickly cover the main financial issues I see affecting the markets without being bogged down with a lot of details.
The Five Bullet Points for August are:
- The markets got the ¼% interest rate increase from 5.25% to 5.5% in July they were expecting from the federal reserve to curb inflation.
No increases are expected for August, with inflation continuing to drop dramatically. - Last year a $500,000, 30-year mortgage could be had for around $2,100 a month; today, that same mortgage amount is over $3,400 a month. This is NOT good news for real estate prices because they must compensate and lower prices for the massive rise in mortgage interest rates. It’s just math!
- As mentioned in July’s bullet points, 9 out of the last 10 years had positive market returns for July. This July was no exception. August may not be the same with professional money managers returning from summer vacations and taking some of the profits made in July. August, unlike July, historically has a 50/50 record for positive returns over the last 10-12 years.
- The jobs market and the economy continues to be strong. The recession the markets have been expecting for the last 12-15 months never happened, but it still could, just not as severely as initially thought.
- Last Bullet point…Good News! If you’re an investor, interest rates are better than they’ve been in many years. The FDIC Insured CDs we are offering have yields of 5.5% or better with terms from 6-24 months. Text or call us at 830-609-6986 during business hours for more information.
Until next time have a good August and try to stay out of the heat, especially in the South. That’s all for now.
If you would like further explanation of any of the bullet points mentioned, please call or text (830) 609-6986 during business hours or email us by clicking here.
Bob Barber, Founder & Owner
Christian Financial Advisors®