Charles Schwab’s Post

With interest rates expected to decline, it's crucial to reassess your investment strategy as proactive planning can help you navigate these changes effectively. Consider these options from the Schwab experts! #FinancialPlanning

Seasonality in full force, market optimism is back. Will we continue to see a "Santa Claus rally", as we enter 2024? When will the rate "cuts" start, and what kinds of tailwinds will they create for investors? https://lnkd.in/gYRWEPnZ

Very interesting read. What I picked out of this: 1. Globally, holding cash & financial assets (not real estate) caused individual adults to lose wealth (-3.6%). 2. Real estate (as always) is thriving in inflationary environments (duh). Interestingly...Yesterday, the Federal Reserve pulled a 180 and is planning to lower interest rates in 2024. They seem to be disregarding the hot economic data from consumer spending, jobs, and unemployment. This is likely to lead to increased inflation for the coming years. Be prepared.

Investors consider taking on more risk ahead of interest cuts.

The Fed dot plot signals a single rate cut this year amid the ongoing success of the restrictive monetary policy. However, the question remains: could there potentially be room for two rate cuts? #Fed #MonetaryPolicy #RateCut

New week calls for updates! Federal Reserve stress test results: U.S. banks considered strong enough. Surprise market reaction to tech stock fluctuations. U.S. pending home sales decline. Click here to learn more… #igwealthmanagement #wealthmanagement #financialplanning #planning #finance #stocks #FederalReserve #stress #markets #marketupdates #marketexpectations #vannoort #pauljarvie https://ow.ly/NZAB50SthSi

Income has returned to credit due to higher-for-longer interest rates. We seek out pockets of credit where investors are better compensated for risk. Watch my colleague Devan Nathwani, Portfolio Strategist, share more in this week’s #MarketTake👉 https://1blk.co/3XLYfep

What Financial Advisors are Telling Their Clients Today? November's burst of buying in the stock market slowed last week, as all of the major averages posted losses, but nothing too dramatic. he Dow ended about 0.1% lower—basically flat. The S&P lost less than 1% for the week, while the Nasdaq ended 1.5% lower. All three indexes are still positive for the month, and well off those October lows. But steeper inversions in the U.S. Treasury market are warning of tough times ahead. The full U.S. yield curve inverted last week, with the one-month Treasury bill yield rising above the 30-year Treasury bond yield. The last two times that happened: August to September of 2019—which was followed by a recession beginning in March of 2020, and August 2006 to August 2007—which was followed by a recession that started in January 2008. Investors are looking for some solid footing and consistent messaging from the Federal Reserve as to the path of future rate hikes. And what we got last week from several Fed officials is that the path to the central bank's terminal rate remains pretty steep. St. Louis Federal Reserve President James Bullard said Thursday that the policy rate is not yet in a zone that may be considered sufficiently restrictive. According to Bullard, the appropriate zone for the federal funds rate could be in the range of 5% to 7%, which is higher than what the market is pricing. That's the first time we've heard that 7% number for the terminal rate from the Fed, and looking at Fed fund futures from the CME, traders did not have that higher range in their forecasts. The highest target range is between 5% and 5.25%, which traders expect to occur by May of 2023. That mismatch of expectations may have led to some of the selling we saw last week. Inflation is cooling, to be sure, but maybe not fast enough for the Fed, which doesn't want to be perceived as behind the curve yet again. Charles Schwab is out with its latest trader sentiment survey for the fourth quarter, and there are more than a few signs of optimism in trader land. Keep in mind—these are traders, not necessarily long-term investors, but since they're putting money to work more frequently than a lot of us, it's worth paying attention to how they feel. Some key takeaways from the survey? Sixty-eight percent say they are still bearish in the fourth quarter, but they still see opportunity in the energy and healthcare sectors, as well as value stocks. That jives with what we have been seeing in terms of market performance lately, and what we might expect given concerns about a recession.

We think data-driven decisions are a better way to minimize risk. Why? Because leading with emotion doesn't seem like the best way to protect your clients’ investments from market disasters. If you look at portfolios during a Bull-Market, almost everyone is seeing healthy returns and clients are happy. But behind that bull, a bear is lurking. So when inevitably the markets turn — as they have done for over one hundred years — clients want to know what you're doing to protect their life's work. Think about the years 2000, 2008, 2018, 2020, and 2022. The prior year's Bull-runs are now at risk for double-digit drawdowns. Do you have a solution? Have you planned your exit? The best time to introduce an escape route is before the house is on fire… Learn more about our exit strategies and how you can implement immediately at https://lnkd.in/gR8mSmhf #financialadvisors #investing #retirementplanning #finance #cfp #cfa #stockmarket #research #financialreporting #quantitativefinance #portfoliomanagement #buyandhold #bearmarket #bullmarket See our SEC adviserinfo online at https://lnkd.in/g_JzhE-2 shermanportfolios.com * The information presented here is intended solely for financial advisor professionals and the firms the represent. All retail investors are directed to consult with their financial professional prior to making any investment decision.

Questions while attending the 1st Birthday of a friend's child this weekend: While no financial advice was given, or is being given here.... I thought I would share. "What do you think rates are going to do this year?" (Wish I had the crystal ball..., but I have thoughts) "Think the stock market will be up or down this year?" (Made a joke about how wrong all the big analysts were with 1-5% returns for the S&P 500 in 2023... they appreciated that!) "Do you think we should buy a house with rates this high or wait?" (Really fun planning question. While high rates suck, is it an investment for only financial reasons, or are you going to get more than a financial return out of your house beyond the numbers? Can't answer without more details specific to a situation!) What other questions would all my friends on LinkedIn want to hear about?