The second fiscal quarter ended with a flurry of buying. Gone with the coming of spring were concerns of tariffs, D.O.G.E. cutbacks to essential services, or mounting federal debt. Stock market participants, at least through June, largely discounted negative news and instead drove the averages to new highs. Retail investors bought the dips and proved, at least in the near term, to be on the right side of the market.
In its simplest form, investing is the process of giving money to another entity (such as the government or a company) with the hope that they will return more money to you (a profit) at a later time. Due to inflation, the value of a dollar in your hand (or under the mattress) is continuously deteriorating - which is what makes investing an appealing choice for many. It’s important to understand the basics of what investing is, how diverse your options are and the risks involved with seeking returns. We are here to help!
When the fourth quarter reporting period ended, the earnings growth rate finished up 4.3%. Despite the Fed raising rates eleven times between March 2022 and July of 2023, the economy defied predictions and continued to grow. One can argue that the economy would continue to grow, at a modest pace, even if the Fed kept their current level of 5.00% to 5.25% through the remainder of the year.
National Savings Month, is an opportune time to explore the strategy of diversification, a key principle for managing risk and enhancing long-term investment success. Diversification is a time-tested strategy that can help safeguard your investments and promote long-term financial stability.
This National Savings Month, let's explore the magic of compound interest - a powerful tool that can significantly boost your savings and investments over time. Harness the power of compound interest to amplify your savings and investments, helping you achieve your financial goals sooner.
Higher rates don't necessarily have to be bad for the stock market, especially if they are associated with stronger economic activity that is good for earnings prospects. Higher rates become more problematic for the stock market, though, when they become the basis for safety trades in an uncertain environment.