Happy Friday! We recently ordered some merch and love the way it looks. We are thinking of ways to share it. Look on our Facebook and LinkedIn pages over the next few weeks for a fun giveaway!
Office announcement: Our team will work remotely from March 24th to 28th while our office gets new paint and carpet. We will still communicate through email and phone, but you won’t be able to stop by the office for a chocolate fix.
Let's dive into a two-minute look at the economy, some interesting stories, and a financial planning secret.
Economy – Worry and Volatility
This week, stocks initially rallied on optimism that the Fed would cut interest rates twice this year, but the following uncertainty tempered gains. The Fed left rates unchanged at around 4.5%, citing potential worries of slower growth and higher inflation this year. It lowered its GDP growth outlook to 1.7% for 2024 and raised its inflation forecast to 2.8% (up from 2.5% in December). Powell emphasized uncertainty with trade and fiscal policy and downplayed concerns over tariffs causing inflation.
Interesting Stories – New Chinese Charger is 3X Faster than Tesla's
China’s top EV maker, BYD, announced it developed chargers that will allow its newest models to fully charge in as little as five minutes (for 250 miles of range), where it takes Tesla’s fastest charger over 15 minutes for 200 miles. This news doesn't bode well for Tesla as its stock has lost over 35% YTD due to falling sales, trimmed sticker prices, and Elon's political engagement.
Putin agrees to limit attacks on Ukrainian energy infrastructure. After a phone call between Trump and Putin this week, the Russian leader said the country would temporarily halt attacks on Ukrainian energy assets but stopped short of signing onto the broader, US-backed ceasefire that Ukraine agreed to. Since the call, both have accused the other of violating the halt with Trump proposing US ownership of Ukraine's nuclear plants for Ukraine’s security.
Israel sent ground troops back to Gaza as a result of Hamas refusing to release the remaining hostages. The new ground offensive put troops back in areas in Gaza after a two-month ceasefire with Hamas.
Financial Planning Secret– Role of Bonds in a Retirement Portfolio
Bonds have performed exceptionally well this year, outpacing stocks, reinforcing their role as a cornerstone of a well-structured retirement portfolio. As a Spokane financial advisor, I emphasize that retirees with a solid financial plan don't need to chase higher returns with excessive stock exposure. You still need stocks for long-term growth to hedge against inflation, but the key is having the right balance—enough stocks to ensure purchasing power but not so much that market swings threaten your retirement. We remind clients not to sacrifice a potentially successful retirement for the chance of leaving more money for heirs (unless that's their goal). If you want guidance on the right investment mix, our team can help you create a plan tailored to your retirement needs.
To talk with a Spokane financial advisor, schedule a no-cost, no-commitment discovery call today.
About the Author
Noah Schwab CFP® is a financial advisor in Spokane, Washington, specializing in helping retirees with 401k Roth conversion strategies.
- Fiduciary. No commission, no insurance products
- Offering investment management and financial planning
