Popular on TelAve
- Attorney Lindsay Graves Joins Bisnar Chase's Personal Injury Litigation Team
- Sparkling Logic Seamlessly Integrates Machine Learning and AI into Automated Decision Making in Latest Washington Release
- Kemeny, Ramp & Renaud, LLC Recognized as A Top New Jersey Personal Injury Law Firms in NJBIZ's 2024 Reader's Rankings Awards
- AltShift WP Thrilled to Welcome Two New Clients: Arista Health Care and Ryan's Roofing & Repair
- New Case Study: 37 Years of Improving Emergency Communications at Rush Copley Medical Center
- Multiple Acquisitions in Play to Deliver Powerful New Capabilities Incorporating Artificial Intelligence: Prestige Wealth Inc. Stock Symbol: PWM
- purelyIV Launches Mobile App for Seamless Wellness Management
- Scriptor Software Unveils Free AI-Powered Software for Radiology Impressions
- $280B Invested, Mental Health Worsens—CCHR Demands Audit and Accountability
- Revolutionizing Coupon Management with Blockchain Technology
Similar on TelAve
- Work 365 Now Available on Pax8 Marketplace, Empowering MSPs with Enhanced CSP Management
- Material Capital Partners Closes Financing for 170-Unit Build-For-Rent Community in Brunswick, Georgia
- The Computer Works Secures Growth Capital to Expand Fiber Connectivity
- Now Shipping Epson ColorWorks CW-C8000 Color Label Printers Across the USA and Canada
- L.A. County Board of Supervisors Recognizes Amapola Market for Outstanding Community Philanthropy
- Comp U Floor ERP vs. FloorZap: Discover the Best Flooring Business Software
- Inspiring the Full Arch Industry: Dr. James Fetsch Speaks At The Full Arch Growth Conference 2024
- LIB Empowers Uzbekistan's Automotive Industry: A New Era of Quality Assurance
- Dale Sorensen Real Estate Names Donna Browning Vice President of Sales, Announcing Her Return to the Company
- Pittsburgh Professional Women invites all Women and Allies to MONEY CLUB
After today's Federal Reserve meeting, Wharton Wealth Planning believes CD's are less attractive and fixed income markets are more attractively priced
TelAve News/10823367
NEW YORK - TelAve -- Wharton Wealth Planning, LLC, a New York-based independent fee-only fiduciary financial advisor, believes many areas in the fixed income markets are attractively priced and that it is likely not be the best idea to over-allocate to cash right now. Many investors have flocked to CD's and high interest bank accounts over the last couple of years, but that trend is likely to reverse itself.
Today's Federal Reserve meeting supports the view that inflation is cooling and rates will likely fall over the next few years, as the Federal Reserve maintained expectation for three interest rate cuts before the end of 2024. From a big picture perspective, recent Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which serve as gauges to measure inflation, have been moving in the right downward direction. Two years ago, yields on 10-year Treasury bonds were below 2%. They've more than doubled since then. This is a big advantage for those planning for and in retirement in particular. The Fed Dot Plot, which many view as an orchestrated road map for the markets, suggests that current policy rates are almost 300 basis points above a 'long-run neutral stance,' which is where the Federal reserve may want to get to over time. A neutral stance would theoretically be the rate at which the economy is neither stimulated nor slowed down by interest rates.
More on TelAve News
Bonds currently have numerous advantages over cash in Wharton Wealth's view. Given where cash interest rate yields are currently, there is a very strong case for bonds right now. When you purchase bonds and longer maturity fixed income investments, you are able to lock in a higher yield for longer. So, if you buy a five-year bond or a 10-year bond, that means that interest rate will prevail over your holding period.
Another key advantage is that you do have some appreciation potential with fixed-income instruments, which is something you do not have with cash interest rate instruments. You don't have principal volatility with a CD, but that goes both ways. You can't have losses with a CD, but you can't have gains, either. As we think of rates potentially going lower in the future, the fixed-income investor stands to benefit potentially from some appreciation in such an environment.
Wharton Wealth believes there are also some attractive areas in the stock market. According to Rosenstrock, "When we look at the asset classes that have had the best long-range opportunity to outrun inflation, stocks have done that compared to other asset categories." This is also important as you are thinking about your future and allowing for growth in your investment accounts.
More on TelAve News
Wharton Wealth Planning believes that you should have a diversified mix of stocks, bonds, and short-term investments, and should diversify your portfolio within those different types of investments. The right percentages and investment selections should be customized and depend on your personal situation and circumstances.
Wharton Wealth Planning (https://whartonwealthplanning.com/ ) provides comprehensive and consultative investment management and retirement planning services. Wharton Wealth Planning employs a disciplined investment philosophy backed by academic and scientifically validated principles and processes. Unlike many other brokers and advisors, Wharton Wealth Planning advisors' compensation is not based on what products are used to implement client investments. CERTIFIED FINANCIAL PLANNER™ practitioners have taken additional steps to demonstrate their professionalism by completing a rigorous certification process, meeting continuing education requirements for ongoing certification, and adopting the CFP® Board's Code of Ethics and Standards of Conduct.
Today's Federal Reserve meeting supports the view that inflation is cooling and rates will likely fall over the next few years, as the Federal Reserve maintained expectation for three interest rate cuts before the end of 2024. From a big picture perspective, recent Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which serve as gauges to measure inflation, have been moving in the right downward direction. Two years ago, yields on 10-year Treasury bonds were below 2%. They've more than doubled since then. This is a big advantage for those planning for and in retirement in particular. The Fed Dot Plot, which many view as an orchestrated road map for the markets, suggests that current policy rates are almost 300 basis points above a 'long-run neutral stance,' which is where the Federal reserve may want to get to over time. A neutral stance would theoretically be the rate at which the economy is neither stimulated nor slowed down by interest rates.
More on TelAve News
- Century Fasteners Corp. Receives Accreditation to AS9120B Quality Management Systems
- Material Capital Partners Closes Financing for 170-Unit Build-For-Rent Community in Brunswick, Georgia
- The Computer Works Secures Growth Capital to Expand Fiber Connectivity
- New Release: Kannazuki, Vol. 1: The Beast Of Akune Shakes Up the Fantasy Genre!
- Now Shipping Epson ColorWorks CW-C8000 Color Label Printers Across the USA and Canada
Bonds currently have numerous advantages over cash in Wharton Wealth's view. Given where cash interest rate yields are currently, there is a very strong case for bonds right now. When you purchase bonds and longer maturity fixed income investments, you are able to lock in a higher yield for longer. So, if you buy a five-year bond or a 10-year bond, that means that interest rate will prevail over your holding period.
Another key advantage is that you do have some appreciation potential with fixed-income instruments, which is something you do not have with cash interest rate instruments. You don't have principal volatility with a CD, but that goes both ways. You can't have losses with a CD, but you can't have gains, either. As we think of rates potentially going lower in the future, the fixed-income investor stands to benefit potentially from some appreciation in such an environment.
Wharton Wealth believes there are also some attractive areas in the stock market. According to Rosenstrock, "When we look at the asset classes that have had the best long-range opportunity to outrun inflation, stocks have done that compared to other asset categories." This is also important as you are thinking about your future and allowing for growth in your investment accounts.
More on TelAve News
- Purfresh Clean launches its new "SPACE" product - An innovative technology restaurants are using to get rid of their rat and mice problems
- The Ergo Company presents Old Righteous Blues A Compelling South African Tale
- L.A. County Board of Supervisors Recognizes Amapola Market for Outstanding Community Philanthropy
- Master P Hosts the First Major Hip-Hop Black History Month Benefit Concert at NJPAC
- Paddy Power Teams Up with Our Price in Their First-Ever Christmas Ad
Wharton Wealth Planning believes that you should have a diversified mix of stocks, bonds, and short-term investments, and should diversify your portfolio within those different types of investments. The right percentages and investment selections should be customized and depend on your personal situation and circumstances.
Wharton Wealth Planning (https://whartonwealthplanning.com/ ) provides comprehensive and consultative investment management and retirement planning services. Wharton Wealth Planning employs a disciplined investment philosophy backed by academic and scientifically validated principles and processes. Unlike many other brokers and advisors, Wharton Wealth Planning advisors' compensation is not based on what products are used to implement client investments. CERTIFIED FINANCIAL PLANNER™ practitioners have taken additional steps to demonstrate their professionalism by completing a rigorous certification process, meeting continuing education requirements for ongoing certification, and adopting the CFP® Board's Code of Ethics and Standards of Conduct.
Contact
Wharton Wealth Planning
David Rosenstrock, CFP®, MBA
Director of Investments & Financial Planning
***@whartonwealthplanning.com
Wharton Wealth Planning
David Rosenstrock, CFP®, MBA
Director of Investments & Financial Planning
***@whartonwealthplanning.com
Source: Wharton Wealth Planning, LLC
0 Comments
Latest on TelAve News
- Dr. Barrie Matthews of Big Sky Smile Center Speaks at the Full Arch Growth Conference, Inspiring Dentists Nationwide
- Dr. Sathish Palayam Speaks at the Full Arch Growth Conference, Sharing Insights to Revolutionize Patient Care!
- Donors and Recipients of Nashville Chopin's Metro School Piano Donation Program Announced
- Loyal American Airlines Passenger and Son of 33-Year Employee Files Legal Action Against Airline for Racial Bias, Unlawful Ban, and Injustice
- OneSolution® Dental Implant Centers Offers Advanced Zygomatic Dental Implant Solutions
- Pittsburgh Professional Women invites all Women and Allies to MONEY CLUB
- Speranza Dental Implant Center's New Website Launch!
- Education Through Music-Los Angeles to Host 19th Year Benefit Gala on Friday December 6th at Skirball Cultural Center
- Celebrating A Decade Of Young Storytellers: The 10th Annual Flint Youth Film Festival Opens For Entries
- Tween Magazine Launches to Empower and Inspire Preteen Girls
- IOTAP (Work 365) Earns SOC 2 Type II Compliance, Reinforcing Data Security Leadership
- Lake Norman Philharmonic - Annual Holiday Concert
- "Federal Complaint Filed: David Medeiros Uncovers Medicaid Mismanagement, ADA Violations, and Systemic Failures in Connecticut"
- Introducing Feelness: A Revolutionary Solution for Physical Self-Care Without the Fitness Lifestyle
- Omnitronics Wins Software Combined 2024 AI Innovation Award
- Mrs Elemental® USA Rebrands to Empower Married Women Across the Nation
- Time to Investigate Mental Health Research Waste on Bizarre Animal Studies
- The World's No.1 Superstar Is Celebrating His 21st Birthday for the 28th Time Today!
- Who is Stan Fitzgerald Georgia Veterans for America First state chapter Political Director
- 4th Annual Pompano Fall Festival: Shirley Murdock, Adina Howard, Jeezy, and Plies Headline Broward County's Top Music Festival