This is the first of a monthly communication we are starting with only clients of Christian Financial Advisors®. 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
Starting this month, and every month hereafter, I will be bringing you “Financial Bullet Points,” which will cover the main financial issues I see affecting the markets at the time without being bogged down with a lot of details in just three minutes or less.
Bullet Points:
- The Federal Reserve is slowing interest rate increases way down since they started dramatically raising them in March 2022 from 0% to 5.25% today to curb inflation. With inflation subsiding dramatically over the last year, the consensus is the Fed will now raise interest rates much more slowly, moving forward until they hit a target inflation rate in the 2-3% range. The markets expect a 1/4 percent rise in interest rates before the end of July which may or may not happen.
- The U.S. Government debt ceiling that was hanging over the stock markets in May has now been put off for another few years by our politicians.
- With the rise of interest rates, Fixed Income for savings and investment accounts are now better than they have been in years.
- We now offer FDIC, insured CDs at competitive rates that are many times better than you can get at your local bank or Credit Union. Contact us for rates.
- Many professional money managers are typically on vacation in July, so expect many more market swings from day traders through the end of this month.
- An interesting note for July is that the markets have seen a positive return for 9 of the last ten years. Will that happen again this July? Only time will tell.
That’s all for now. Once again, 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.
