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Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you, Brandy. Appreciate it.
Brandy Auterson-Hurst:
So financial markets saw an increase in volatility last week as the Fed had their annual meeting. What were the most important factors driving this shift?
David Nelson:
Well, I think the Fed and the markets have been somewhat in sync as far as most of the year. What we’re finding now, however, is looking out forward. In other words, a little longer term, the Fed and the markets clearly are not in sync. The piece that I brought along today, it’s a nice chart. It’s given the folks a nice visual of the Fed Committee meetings, and what we are finding here, the individuals from the dots, each one of them represents a vote from one of the committee members. What we see here on the left is 2023. They’re pretty much in sync. They’re kind of in the same area. As we move to the right, we’re going out to ’24, ’25, and Longer Term. And what we see there is that there’s quite a difference in opinions as far as where things are going to be as far as interest rates going forward. And these are really important pertaining to decisions people are making pertaining to their money. The red line is just trying to give us the average as far as of them.
As you can see, the trend line is clearly down. And again, whether this is indicating recession concerns, we don’t know exactly, but the bottom line is, the market and the Fed Committee aren’t necessarily in sync.
Brandy Auterson-Hurst:
Okay, so what does this mean for viewers’ investments?
David Nelson:
Well, I think people need to be cautious. This is only one item. It’s one that’s very, very important as far as decisions going forward. But I would not be aggressive at this point in time. We’ve had a nice run. It’s probably time to protect some of the gains that you’ve had so far this year.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
4 Your Money is a production of NelsonCorp Wealth Management in Clinton and Davenport. The opinions voiced in the show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative. Securities offered through Cambridge Investment Research Incorporated, a broker dealer member of FINRA SIPC. Investment advisor representative, Cambridge Investment Research Advisors Incorporated, a registered investment advisor. Cambridge and NelsonCorp Wealth Management are not affiliated. Cambridge does not offer tax advice. For more information, visit our website at www.nelsoncorp.com.