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 third 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:
- August markets did just like I said they would as professionals returned to work from their summer vacations to take July profits like they always do. September historically is 50/50 for negative/positive returns. *The last three months of the year are typically 70-90% positive/10-30% negative.
*Observations regarding historical market returns are obtained from monthly performance of the S&P 500 index from 10/31/2011 to 07/31/2023. Past performance is no guarantee of future results.
- Loan interest rates are at 25-year highs, with Chairman Powell indicating more is to come at the August annual meeting in Jackson Hole, Wyoming, a few weeks ago until he hits his target 2% inflation rate. The last few months have indicated inflation is in the 3-3.2% range, so there is still a way to go by his standards.
- 30-year Mortgage Interest rates are in the 7-8% range, causing real estate sales to slow dramatically in many markets as buyers simply can’t afford the higher payments. Many homes for sale in my hometown of New Braunfels, one of the hottest real estate markets in the country for years, are approaching 300-plus days on the market since listing.
- High-interest rates may be alarming for borrowers but are great for savers. We are still offering FDIC Bank CDs in the **5.5% range, and our ultra-conservative fixed-income managed portfolio is holding bonds and bank notes paying 4.5-8% interest rates.
**Our Bank CD minimum is $50,000, and there is a one-time account opening admin charge of 0.3%.
- After many months, TD Ameritrade is now Charles Schwab. This change will allow us to do fractional share trading. This means you will see many more Biblically Responsible individual stock holdings in your portfolios in the future besides Biblically Responsible ETFs and mutual funds we’ve been using.
- Our weekly and video podcast, Christian Financial Perspectives, is four years old with over 175 episodes this month. I occasionally meet clients who have not heard or seen a single episode. We started the podcast to educate our clients on financial topics from a Christian Perspective. You are missing out on a great education if you are not listening or viewing regularly on YouTube. You can listen through a smartphone when driving, cooking, gardening, or taking daily walks.
Until next time, we hope you have a wonderful September! 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.