This 1st Week of October 2022 Thoughts
Fed Fund Watch:
10-Year Yield: the 10- Year Note was 4.2% last week and is now 3.88%. Do NOT spend 1 minute worrying about bonds being down in value. This is how we get back to normal.
Each month you will get an email from me that says: I have posted the following document(s) to your Client Portal. *****_STMT.pdf** *** STMT.pdf *****STMT.pdf Click on the link below to login. We are putting each of your Schwab account statements right into your Client Portal.
I'm working on your Holiday Harry & David gift: did you like what you got last year? Or want some pears? Let me know!
The key to a long, happy retirement is cash flow. Money in the Bank. FICA is a new investment option that might seem too good to be true: let's see if FICA might be money in the bank for you.
You have cash, that will be invested…then you have cash, that is your safety net…your security blanket. FICA is for the cash that you will keep in cash…and not see it move into your investment portfolio as this market, and economy bottoms.
Today I am pleased to bring you a FDIC account called StoneCastle FICA—a Federally Insured Cash Account. Attached is a fact sheet for the Impact FICA (now earning 2.00%) and the Bank FICA (now earning 2.25%). The Impact FICA owns Community Credit Unions and the Bank FICA owns traditional banks. The application is attached so you see how easy this is, but do NOT send it back to me via regular email as it has sensitive info in it. I can send it to you via DocuSign. Once you are set up, you then ACH money in and out of your linked bank account INTO or Out of StoneCastle FICA.
No investment fees, ever: cash flow from us to you!
Last Summer we sold the Emerging Market Funds in your portfolio, with plans to replace them with the Freedom 100 Emerging Markets Index (FRDM). Research shows that societies with Civil, Political and Economic freedoms bring higher returns for investors. Over a year ago we divested from China, Russia, and Saudi Arabia: how good does that feel today?Read: Why Freedom FRDM Matters to YOU.
Today, Saudi Arabia is an absolute monarchy that restricts almost all political rights and civil liberties. No officials at the national level are elected. You already know how Russia and China treat citizens. Why does this matter to you? We are on the right side of history absolute monarchy that restricts almost all political rights and civil liberties
Remember OPEC, founded in Baghdad and signed in September 1970 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela? The formation of OPEC was a turning point in national sovereignty over natural resources, and still plays a prominent role in the global oil market and international relations. Wars or civil disorders are kryptonite for OPEC as they bring extended interruptions in supply, as we are seeing TODAY. Remember the 1970s, gas rationing and lines around gas stations? On Wednesday, OPEC agreed to impose deep output cuts hoping to push oil prices back to the $120 we saw in early June. Read more here: Why OPEC Impacts America
Why does it matter for you? This is depressing news, as lower oil prices (and therefore gas prices) helped the consumer deal with higher prices in food, housing costs and interest rates. The Mon-Tue-Mondo-Rally was based on hopes (just like in June) that the FED would not need to raise rates much more, as inflation was drifting lower. Higher gas prices, especially coming into the winter months, will tell the FED that inflation may not be headed lower.
Today, that hope has faded: the market is down hard and is back in the land of reality. The FED is NOT going to pivot or stop raising rates until the 10-year bond hits 4.5%, IMHO.
Julie Skye | 918-408-7981 |
Required Disclosures: Always read the fine print! This content reflects the opinions of Julie Skye and is subject to change without notice. This content is for informational and entertainment purposes, and it is not a recommendation regarding the purchase or sale of any security. There is no guarantee that any statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Securities investing involves risk, including the potential for loss of principal. There is no assurance any investment plan or strategy will be successful. Julie is an Investment Advisor Representative of Sustainable Advisors Alliance, LLC (SAA, LLC): Advisory services are provided by SAA, LLC. Registration with the SEC does not imply a certain level of skill or training.