February 2025 Financial Bullet Points

Written by Bob Barber, Matthew Barrovecchio, and Don VandeVanter; Prepared on January 21st, 2025

The Bullet Points for February are:

1. 1. President Trump’s First Days: In his inauguration speech, the President outlined several financial actions he would begin to take early on, including controlling government spending (in part through the Department of Government Efficiency) and increasing energy independence (in part through increased oil drilling) to combat inflation and bring down the prices of goods and services.
   2. High Market Volatility: The election outcome, inflation speculation, and interest rate movement caused higher-than-normal volatility in the last 6-8 weeks. As of this writing, January has made up nearly all of the downturn that began in December. This shows investors should stay focused on “time in the market” with a well-thought-out long-term financial plan, not “timing the market.”
   3. Long-term Interest Rates: Since September 2024, the Fed has lowered the Fed Funds Rate by 1%. Meanwhile, the 10-year Treasury Bond yield has increased from 3.65% to around 4.65% today, indicating a normalizing yield curve (where long-term rates are higher than short-term). Longer-term yields drive fixed rates on real estate mortgages and other longer-term borrowing, which may affect the economy’s growth. It also impacted the stock market at the end of the year (as mentioned in bullet point 2 above).
   4. Housing Real Estate Update: The house-buying ‘frenzy’ of the last few years appears to be over. Mortgage applications have dropped significantly since rates began increasing in mid-September. There is over a 12-month supply of housing inventory in some areas, and recent data shows an increase in Housing Starts, creating a lot of competition among sellers.
   5. Financial Planning: January through April are some of the best months to update or start a financial plan from scratch, do long-term tax planning, and/or update a family estate plan. For most people, the summer is too busy with family vacations, and in the Fall, school activities, sports, and the holiday season get in the way of doing these very important tasks. Procrastination is by far the number one reason for financial failure.
   6. Continuing Education and Scriptures. This month’s programs for Christian Financial Perspectives are listed below along with our Scriptures for the month:
      • Ep 219 – 2/11/25 – 10 Biblical Financial Scriptures
      • Ep 220 – 2/25/25 – The Parable of the Talents
      • Deuteronomy 8:11 – “Be careful that you do not forget the Lord your God, failing to observe His commands, His laws and His decrees that I am giving you this day.”

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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
Senior Wealth Advisor & President

Matthew Barrovecchio, CFP®
Senior Wealth Advisor

Don VandeVanter, CPA
Wealth Advisor

Christian Financial Advisors^®