A blog for everyday financial tips, Trajan news updates, and more
The US financial markets have been performing well in 2023, with stocks and bonds showing strong returns up until the end of May. However, there are signs of stress in the “high yield” corporate credit market due to higher front-end interest rates (maturities of 1-5 years). We anticipate increased market volatility in the future, as financing costs continue to rise rapidly, potentially impacting economic growth and corporate profits.
Making investment decisions by focusing on issues beyond balance sheets, income statements, and other measurable metrics has become a major issue in the finance world. ESG (Environmental, Social, and Governance) is the movement aimed at incorporating other factors into the investment decision process. But does it work?
Recent turmoil in the banking industry, including the failure of Silicon Valley Bank, has put a spotlight on Charles Schwab’s unrealized securities losses. However, Schwab’s deposits are much stickier and more diversified than those at SVB. Asset gathering and higher net interest margins should help offset headwinds from “cash sorting.”
The Federal Reserve Bank’s Open Market Committee (“FOMC”) raised the target Fed Funds rate at the March 22nd FOMC meeting amidst the recent bank failures in the US and Europe. Read our March market review!
We see two paths ahead for Disney: Either the company should compete head-to-head with Netflix using a consolidated streaming platform, or it should divest Hulu and ESPN to focus on the franchise content that makes it special. The company could be successful on either path, but trying to straddle both is not working.
Bear markets tend to be followed by a bull run, but when? With elevated geopolitical risk and limited access to credit growth as support in times of recession, it’s important for everyone to stay informed about these challenges – so we can be better prepared when faced with potential instability down the road. Read our February market review!
When you leave your employer, carefully review the plan document of your 401(k) to determine if rolling it over is right for you. Depending on what’s best for your financial future and retirement planning goals, a rollover may or may not be necessary. Here’s what to consider!
In comparison to the rates seen in the 1970s, the most recent rises in interest rates still appear minimal. Despite this, these are the largest adjustments we have experienced in several decades and now, investors have a chance to take advantage of investment prospects that have been dormant in the debt market for over a decade. Here is how you could
maximize the rewards of this opportunity.
Buoyed by signs of declining inflation, a strong labor market, and steady GDP growth, risk assets rebounded from their 2022 capitulation, posting strong returns in January. With inflation being the driver of financial markets over the past four quarters, the $64 million question is “what lies ahead”? Read our market recap for January 2023 by CIO Udayan Mitra, CPA.
The U.S. is facing a gender investing gap with men investing and accumulating wealth at a faster rate than women. To ensure women have enough retirement assets for their long life expectancy, closing this gap is crucial. Statistics from WorldData.info show that women on average live to be 80.2 years compared to men’s 74.5 years. It is essential that we work together to reduce the gender investing gap.
