May 2024 Financial Bullet Points

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, Prepared on April 29th, 2024

The Bullet Points for May are:

1. 1. 1. Professional Fear-Mongering. The unprecedented level of companies “selling economic fear” across social media, podcasts, and news networks is alarming. Social media platforms are among the worst offenders, using algorithms to target those most open to fear-based solutions with messages from these companies. Gold and annuities are frequently promoted as high-commission solutions to the fears these companies cultivate. Individuals must be vigilant and prudent when faced with unethical, manipulative tactics that pressure them to liquidate diversified portfolios in favor of high-commission products. Gold dealers and fixed-indexed annuity salespeople have conflicts of interest when employing persuasive but misleading “fear-mongering” tactics.
      2. Stubborn Inflation. The Federal Reserve faces a significant challenge in achieving its 2% inflation target due to persistent inflation. The latest US inflation report showed a 3.7% annual rate, compared to 4.9% last year, indicating slower-than-anticipated progress. The Fed may need to delay lowering interest rates, and the high prices consumers pay at grocery stores seem disconnected from reported figures.
      3. Yield Curve. The current yield curve inversion, with short-term rates exceeding long-term rates, is approaching the longest on record, surpassing the 21-month inversion from August 1978. While traditionally viewed as a recession indicator, recent economic data trends challenge these long-standing theories.
      4. Company Earnings. April’s quarterly earnings were generally favorable, despite exceptions like the slower-than-expected adoption of the electric automobile industry. Companies are increasing prices to offset higher interest rates and production costs, emphasizing the benefits of stock ownership. Historically, stocks have outperformed inflation over the long term.
      5. Retail Sales. April retail sales declined compared to the previous month, suggesting potential consumer weakness due to high credit card debt, overall debt levels, and diminishing savings. Spending must eventually decrease to reach equilibrium, but robust employment numbers suggest this could be a seasonal fluctuation.
      6. Continuing Education. This month’s programs for Christian Financial Perspectives are:
         • Ep 199 – Biblical Viewpoints of Money and Wealth- Part Three- 05/07/2024
         • Ep 200 – Our 200th episode! A Celebration of the Best- 5/21/2024

           • Remember, we moved to releasing episodes every other week to give people more time between episodes to listen or watch. To tune in, search “Christian Financial Perspectives” on almost any podcast platform or YouTube.

           • Visit our channel: www.cfa.lc/yt

      7. Scriptures for this Month.
         • 1 Timothy 1:7 – For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind.
         • Psalm 1:1 – Blessed is the man who does not walk in the counsel of the wicked or stand in the way of sinners or sit in the seat of mockers.

Until next time, have a wonderful May as temperatures warm up.

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