Financial Planning and Investing

Bonus Podcast was recorded September 12, 2022, with my Good Friend Tom Costantiello CFP® with CONSUS Wealth Management. Topics: Market Updates for August and September 2022 Impacts from record Inflation The Fed and their activities Seems to be No Where to hide in investing your money Things to keep an eye on in coming weeks.  As always, if you would like to talk with Tom about your specific situation, financial plan or investments opportunities feel free to call Tom at 614-310-0169 ext 1, or via email at tom@consuswmg.com. Clips from Tom's Email to his Clients Fed & Inflation Reduction The talk of the town remains reducing inflation along with the timeline and level of Fed aggression. There was no Fed meeting in August, there was the yearly Jackson Hole Symposium, it showed Federal Reserve Chair Jerome Powell is on an aggressive mission. In the meeting of central bankers from around the world, Powell indicated continued vigilance in conquering inflation and used several key-phrases that got the market’s attention. Powell mentioned that the Fed will “use our tools forcefully” and “for some time”–and that these are some of the “unfortunate costs of reducing inflation." Bond Yields Rise When interest rates increase, bond prices decrease and bond yields rise. Benchmark 10 year note yield had whopper of a month during August, settling at 3.132% for the month, up from July’s of 2.641%. Shorter duration interest rates, including 5-year and 2-year notes, also rose in August. While interest rates have risen more sharply in 2022 versus recent years, it’s wise to keep in mind that 10-year note yields have been much higher in the past, impacting the time’s mortgage rates. In fact, 30-year mortgage rates exceeded 17%, in 1981 and 1982. Nobody knows how high rates will go during this cycle, but it’s always good to have a basis for comparison relative to the country’s last inflationary period. Stock Market Reaction Following the Fed commentary, the U.S. equities seemed to be that the Fed’s rate hike agenda may last for an extended period and that higher rates are even more likely as the inflation battle continues. Inflation metrics released in August showed Consumer Price Index (CPI) unchanged in July unchanged in July but still higher by 8.5% year-over-year.  Fall & The Fed As fall approaches, attention will turn to the September Fed meeting. Rate hike is widely expected at the Fed meeting on September 20-21. As of September 6, there’s a 26% chance of a 50 basis point hike and a 74% chance of a 75 basis point hike, per the CME FedWatch Tool. Resources Mentioned in the Pod Cast Fed Comments and outlook: https://www.federalreserve.gov/newsevents/speech/powell20220826a.htm#:~:text=Moreover%2C%20there%20will%20very%20likely,unfortunate%20costs%20of%20reducing%20inflation. Mortgage Rates https://fred.stlouisfed.org/series/MORTGAGE30US CPI: https://www.bls.gov/opub/ted/2022/consumer-price-index-unchanged-over-the-month-up-8-5-percent-over-the-year-in-july-2022.htm Any information provided in this podcast, should be considered Information only and should not be taken for legal, tax or specific financial advice. If you have any questions regarding specific topics please email topshelftalks@yahoo.com #FinancialPlan #FinancialPlanning #Taxfreeincomeinretirement #Taxplanning #MarketOutlook #StockMarket #BondMarket #TheFed #InterestRates --- Send in a voice message: https://anchor.fm/topshelftalks/message