Market commentators are growing leery Show 40

Now is the time to have a plan in place. The market is hitting highs for no explainable reason, Congress is promising $1,400 stimulus checks, and we have ultra-low interest rates. Market commentators are growing increasingly leery of how this may turn out.

Tom Siomades heads the investment division of AE Wealth Management. In a recent letter he wrote, “Now we have a $1.9 trillion stimulus moving through Congress that is meant to address and redress many of the problems those policy mistakes and shifting priorities created.  It will also take years to pay out and increase the size of the government. Why does that matter? More debt means more interest payments, which equals less capacity to borrow in the future and fewer funds available to reinvest in our economy and society. “How is all this borrowing and spending possible? Fed Chairman Powell’s testimony before Congress this past week reaffirming the Fed will keep rates artificially low is one major reason. In response, it is likely that prices will go up and we’ll have inflation. The Fed will have to act because it cannot ignore inflation forever; and history has shown that rates will go up and the equity markets will decline. Inflation and the Fed’s ultimate response are not the only things we should worry about; the markets themselves will have a say in where we head from here.”

We align with portfolio managers that are forward looking.  We believe mitigating against market downturns is essential to a sound investment plan. When you’re ready to begin looking a comprehensive plan that factors in all the sides to financial planning, please call our office at 864.641.7955.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program.