Does The Market Care About Your Feelings?

Since the 1970s, economists have measured how consumers are feeling about the financial environment, by asking five questions. How would you answer these today if they were asked of you?:

 

  • “Would you say that you (and your family living there) are better off or worse off financially than you were a year ago?

 

  • Now looking ahead–do you think that a year from now you (and your family living there) will be better off financially, or worse off, or just about the same as now?

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Waypoint Wealth Management

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Waypoint Wealth Management

How Stocks Have Responded To Hikes In Fed Funds Rate

What a week. With the Federal Reserve increasing their “target” federal funds rate by a half-percent (the last time it was increased this much was the year 2000), the market responded with a wild ride up, followed by a large drop the next day.

In case you’re wondering how stocks typically respond to moves like this, we thought it would be helpful to look at some of the evidence. How has this worked out in the past, and how much should we worry?

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Waypoint Wealth Management

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Waypoint Wealth Management

6 Possible Revisions Coming For Retirement Savers

A few weeks ago, the U.S. House of Representatives overwhelmingly passed (with a vote of 414-5) the “Securing a Strong Retirement Act of 2022” (also known as the SECURE Act 2.0). Although the Senate is supposed to take up a version of its own bill soon, and this is not law yet, we do expect some version of this bill to be passed by year-end.

At 139 pages in length, you have many more exciting things to do with your time. So we thought we’d emphasize the six most relevant changes that would impact most clients:

 

One: Pushing back the starting age for Required Minimum Distributions (RMDs) again > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

Geopolitical Tensions and Your Portfolio

It’s quite an understatement to say that it has been hard to watch the atrocities in Ukraine, as Russia continues to invade them. This is undoubtedly one of the most significant geopolitical events in decades. As we reflect on the news, we are primarily concerned about the countless innocent lives that will be impacted by this war. Our thoughts and prayers go out to any of you that have friends, family, or loved ones in the region.

 

As we look at the financial impacts, Geopolitical events like military or economic conflicts can affect stock markets in many ways. > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

Three Questions I’d Ask About Downturns

Stock markets have sold off this year, from what primarily looks like the fear around Russia invading Ukraine. There is also news of higher inflation (after decades of low inflation), as well as interest rates and some other headlines. Recently, the driving force seems to be Russia, however.

So far, what we’re seeing is a very normal type of pullback. As long-term investors, we need to expect downturns from time to time, and this is nothing outside of normal.

However, if this is giving you worry in any way, here are three questions to ask yourself:

 

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Pete Dixon, CFP®

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Pete Dixon, CFP®

Partner and Advisor