Staying Focused and Grounded to Keep You Moving Forward

The U.S. Economy seems to be in good shape. Inflation has subsided from the highs of last year. Third quarter growth is expected to exceed 3%. While unemployment has risen to 4.2%, this has brought the employer/employee relationship back into balance. Economists only declare recessions in hindsight, but the future looks bright.

The Federal Reserve eased interest rates for the first time since March 2020 by lowering the bank lending rate by 0.5%. They are expected to continue lowering rates at a steady pace for some time. Lower interest rates will drive more economic activity by making it easier to buy a car or purchase a home.

The economic laggard this year has been China. In the last few weeks, the Chinese government has finally started to take action. What’s good for the Chinese economy is good for the global economy. In reality, government spending has been helping the markets all year. Recent global government actions will continue to provide liquidity to the market. Hopefully, they won’t go too far and create another inflationary environment.

We continue to see an increase in attempted fraud. Be aware that scammers are after your assets. Do not respond to suspicious emails or phone calls. When in doubt about correspondence that you receive, contact the company directly using the information on your monthly statement to address any concerns. As always, we are here to help if you want a second opinion.

And finally, several of you have contacted us with concerns regarding the outcome of the presidential election. Take comfort in the fact that no matter which party holds office, it holds no bearing on investment returns over time. It might surprise many that, historically, each party has an almost identical 9% rate of return. When an investor withdraws from the market due to the political party in power- it crushes their returns. We strive to pick securities on your behalf that have strong future earnings, no matter who sits in the Oval Office.

Very Truly Yours,

Michael F Cantlon
Thomas E Guyett
Robert T Gephart