As you know, the Federal Reserve Open Market Committee has been raising interest rates in an attempt to slow the economy so as to slay the inflation dragon. There are signs that their efforts are working.
However, one big problem - a problem that has been looming for quite some time now - is finally upon us. Our federal government is now spending as much on interest payments as they are on national defense. This is not a short-term problem. The risk is that this increases the chances that we are in a secular bear market that is currently experiencing a cyclical bull phase.
Finally, we show a recent example of why you need to be careful when digesting the news.
#stockmarket #nationaldebt #economy #nationaldefence #bullmarket #bearmarket #secularbear #secularbull #fed #federalreserve #fomc #interestrates
This information is intended to be educational. Hicks & Associates Wealth Management does not provide tax or legal advice. You should consult with a qualified tax, legal or financial professional before making any decisions.
Investment advisory services are offered through Hicks & Associates Wealth Management, LLC (“Hicks & Associates”), an investment adviser registered with the Securities and Exchange Commission. Registration as an investment adviser does not imply a certain level of skill or training. More information about Hicks & Associates can be found in Form ADV Part 2 or Form CRS which is available on our website.
Past performance is no guarantee of future returns. Hicks & Associates reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The visuals shown are for illustrative purposes only and do not guarantee success or certain level of performance. This material contains projections, forecasts, estimates, beliefs and similar information (“forward looking information”). Forward looking information is subject to inherent uncertainties and qualifications and is based on numerous assumptions, in each case whether or not identified herein.
This information may be taken, in part, from external sources. We believe these external sources to be reliable, but no warranty is made as to accuracy. This material is not financial advice or an offer to sell any product. There is no guarantee of the future performance of any Hicks & Associates portfolio. The investment strategies discussed may not be suitable for all investors. Before investing, consider your investment objectives and Hicks & Associates charges and expenses. All investment strategies have the potential for profit or loss.