Is a short-term, lower risk investment right for you? At the end of September 2023, various forms of cash equivalents such as money market funds, Treasury bills, Certificates of Deposit (CDs), and in many 401k accounts, the stable value fund option, currently provide yields in the 5.0% to 5.75% range. Determining which investments to make depends on your personal situation, time horizon, risk tolerance, and goals.
Your investment time horizon is one of the most critical considerations for your total retirement preparation, yet it's also one of the most overlooked. Here are some key points to consider when planning for your investment time horizon.
One of the most important attributes of the wealth management process is to manage risk.
What should investors consider during periods of high inflation? The stock market, as measured by indices like the S&P 500 and FT Wilshire 5000, has been very resilient from the bottom of the Great Financial Crisis of 2008/2009. We believe the primary drivers of this performance have been low interest rates, low inflation, and cheap energy.
By now, most of you are aware that federal regulators have shut down Silicon Valley Bank (“SVB”), a big lender to start-ups in tech and venture capital (roughly 40% of tech start-ups were customers of SVB), after its parent company disclosed losses that raised fears about other banks. As a result, many financial companies have had steep declines over the past few trading sessions as questions about the health of the banking sector have come into focus.
The economy, interest rates, inflation and stock market valuations have all changed dramatically in a very short period. This has generated many questions.