Bryan

The Federal Reserve’s dual mandate is to promote maximum employment and stable prices (control inflation). They pursue these goals through changes in the Fed Funds Rate. In 2022, they began raising rates to combat inflation, which has been decreasing back toward their target of 2%. While the Fed is cautious to avoid cutting rates too

Recent market volatility has been largely influenced by the Federal Reserve and expectations around interest rate cuts. Notably, the performance of large-cap stocks compared to small-cap stocks has been tied to these rate expectations. Earlier this quarter, higher inflation led to fewer anticipated rate cuts, favoring large caps as small caps struggled with rising rates.

The S&P 500 is often used to assess portfolio performance. What might be less familiar is how this Index is calculated- it’s based on market cap, meaning larger companies like Apple, Microsoft, and Nvidia have a greater influence on the index’s movements. Recently, the size of these giants compared to smaller companies in the Index

Buying and holding can lead to significant emotional & investment pain for investors. Market downturns can be a prolonged and painful experience, further intensified when considering inflation. Historically, there have been significant periods known as “lost decades” like 1929, 1968, or 1999 where $1,000 would have shrunk to less than $400 throughout the decade. And

Inflation has come off its peak, but recent readings of the Consumer Price Index remain stubbornly high. The Federal Reserve’s current dilemma: keep inflation under control while supporting economic growth. As seen in the grey line, historical patterns warn that cutting interest rates too soon can lead to a resurgence in inflation. The Fed must