In this segment of Midday Money, Nancy discusses rising interest rates. Watch it online here. Interest rates are on the rise, so we have to look at what’s going on. Right now, we’re seeing the 10 Year Treasury has increased by about 30 basis points (so that’s 0.30%). 30 Year Mortgages are up about 0.5%, and 15 Year Mortgages are up about 0.4%. Will they go higher? The answer is probably. The Federal Reserve may increase rates in December. We think that’s going to happen right
It’s a time of uncertainty, and everyone needs to know that uncertainty is the biggest thing that investors do not like. We’re trying to look at what this is going to mean for our stocks. We looked at the Goldman Sachs Economic Outlook. There are some positives in that. They are holding their estimates for GDP for next year at 2% for right now. They say that a rate increase by the Federal Reserve is less likely in December, but we’re going to see. One of the things that was m
Nancy appeared on WLBT's Midday Mississippi yesterday to explain the recent scandal at Wells Fargo and how this affects the bank's customers. Watch it online here: #banks #economy #investmentadvisor #financialadvisor #feeonlyfinancialadvisor
Investing in stocks in a long-term game. You just have to expect volatility, meaning fluctuations in the market. That’s what comes with stock market investing. They do offer the best opportunity for growth, though. That’s why we go there. But expect them to bounce around. Remember that we define a market correction as a 10% decline. We did go through that. Understand that sometimes it happens very quickly, but more often than not, it’s a gradual step down. You only realize yo
I had a chance to take a group of students from Mississippi College to the Global Asset Management Education Conference in NYC. We ran into a group from Mississippi State as well as a group from Jackson State (I don’t know if Ole Miss was there). But it was a chance for me and for those students to then listen to the word from the Wall Street gurus—and it was definitely a really good word. A quote I bring back from one of the panelists: “Expect a long-run secular bull market.
If we look at the price of oil right now—below $50 a barrel—it was about six months ago that it was at $115 a barrel. We see this huge drop. Everybody knows you’re starting to see prices at the pump below $2 a gallon. The strange thing about it earlier in the week: the stock market plummeted with this news. It didn’t like it. So, we have to say: isn’t this good news? Well, it’s good for some and not so good for others. The good news is that it’s really great for consumers. It
GDP is Gross Domestic Product. It is a measure of the economic activity, and it’s like taking the temperature of the economy. You want it to be moving along nicely, but we don’t want to get too overheated. So we look at how this is taken and what our results are. It is measured by quarter, and the bad news is that the first quarter was terrible. It was a - 2.9%. Normally, if we have two consecutive quarters that are negative, it could mean a recession; but we knew that our we
The Federal Reserve Bank was created in 1913 and was created in response to all of these economic swings. We used to have all of these booms and busts in our economy. We wanted a mechanism that would help us address when we have downturns. That’s what the Federal Reserve does. They do that through their ability to control the supply of money, which means they can create or print money. That can lead to inflation which is not so good of a thing, but when they do that, they can