Market Commentary

January 2020 Portfolio Updates

We are now nearly one month into the new year and the new decade. An interesting fact that has been a topic of discussion in the investing community recently is that the US economy didn’t experience a recession this past decade. While this might not surprise you, what may is the fact that this is the first time since the Great Depression that this has happened. According to the National Bureau of Economic Research, the US economy has, on average, experienced a recession roughly every four and a half (4.5) years. That said, we still believe in the strength and...

The SECURE Act: Three Major Changes to Retirement Rules

This Tuesday the House of Representatives passed the Year-End spending bill to fund the government through 2020. This in and of itself is a really great thing for our country, however, what was “attached” to the spending bill may be even more powerful for you, the everyday investors. The Setting Every Community Up for Retirement Act of 2019, or commonly referred to as the SECURE Act, was attached to the spending bill which was sent to the Senate and is expected to vote on it by the end of the week. This act has been referred to as the most...

In Focus – Fed Rate Cut

What’s happening?   What’s going on? On September 18th, the Federal Reserve voted to reduce short-term rates by 0.25% to cushion the U.S. economy against a global slowdown. The Fed’s decision to reduce rates follows their rate cut in July, in which Fed Chairman Powell stated that they would “act appropriately to sustain the expansion,” words that were repeated in the most recent statement from September’s meeting.   Why is it important? Interest rate cuts are typically viewed as defensive moves by the Federal Reserve to avoid an inevitable recession; however that is not their motivation in this instance. The Fed sees their decision as an...

Market Update – September 2019

At Traverse Planning we are standing beside you today, and we’re looking ahead towards tomorrow’s challenges and opportunities. Our goal is to keep you well informed about what’s happening in the markets so you’re more in control of your financial future. Here is a brief recap of what has been going on over the last month or so and what we expect in the month ahead. As always, if you have questions or concerns, don’t hesitate to contact us today.   Key points We see little near-term risk of recession, but trade tensions pose a risk of lower growth and higher inflation,...

Market Update – August 2019

At Traverse Planning we are standing beside you today, and we’re looking ahead towards tomorrow’s challenges and opportunities. Our goal is to keep you well informed about what’s happening in the markets so you’re more in control of your financial future. Here is a brief recap of what has been going on over the last month or so and what we expect in the month ahead. As always, if you have questions or concerns, don’t hesitate to contact us today.   What’s happening?   • Yield Curve Inversion – The yield on the 10-year Treasury note broke below the 2-year rate, a “canary in...

In Focus – Yield Curve

The 2 to 10-year yield curve inversion: What’s happening? The yield on the benchmark 10-year Treasury note broke below the 2-year rate, a “canary in the coal mine” scenario that has historically preceded every recessionary environment since 1978. The 10-year Treasury note yield fell as low as 1.574%, briefly trading around 1 basis point below the yield on the 2-year note. Ultimately, the inversion was short-lived with the 10-year treasury yield closing higher than the 2-year.   This phenomenon occurs when two trends emerge: The bond markets believe interest rates will fall in the future as the Fed or economic forces attempt to create...