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®
The views expressed represent the opinion of Christian Financial Advisors®. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not indicative of future results.