Casual Friday: Financial Insights

Over the past few years, the path of interest rates has been highly unpredictable due to factors like inflation, economic growth, and the Federal Reserve's policies. The 10-year U.S. Treasury yield exemplifies this volatility, having surged from 3.8% at the end of last year to a peak of 4.7% in April, before recently settling around 4.2%. These higher rates have confounded the expectations of investors and economists, creating a challenging environment for the bond market, as rising rates lead to falling bond prices.

However, with inflation starting to show signs of improvement, many now anticipate that the Fed might begin cutting rates by the end of the year. In this episode, Brian and Ryan explore what perspectives diversified investors need to maintain balance and stability in the months ahead. Join us as we delve into the implications of these economic trends and provide insights to help you navigate this complex landscape.

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- Find us on the Web: FordFG.com
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. The economic forecasts set forth in this material may not develop as predicted.
The advisors of Ford Financial Group are Registered Representatives with and securities are offered through LPL Financial member FINRA/SIPC. Investment advice offered through Perennial Investment Advisors, a registered investment advisor. Ford Financial Group and Perennial Investment Advisors are separate entities from LPL Financial. Ford Financial Group, Perennial Investment Advisors, and LPL Financial do not provide tax advice or services.

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In this episode, we explore the effects of rising and falling interest rates on bonds and money market funds. We discuss:

• Bonds as a Hedge: Are government bonds have become a less reliable hedge in volatile markets
• Money Market Funds: The behavior of money market fund assets following the first Fed rate cut and historical trends.
• Equities Outlook: Are U.S. equities and sectors poised for growth as inflation cools?

**Connect with Us:**
- Subscribe on YouTube: https://www.youtube.com/@fordfinancialgroup
- Subscribe to the Casual Friday - Financial Insights podcast: Apple and Spotify
- Share your stories or questions: [email protected]
- Find us on the Web: FordFG.com
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. The economic forecasts set forth in this material may not develop as predicted.
The advisors of Ford Financial Group are Registered Representatives with and securities are offered through LPL Financial member FINRA/SIPC. Investment advice offered through Perennial Investment Advisors, a registered investment advisor. Ford Financial Group and Perennial Investment Advisors are separate entities from LPL Financial. Ford Financial Group, Perennial Investment Advisors, and LPL Financial do not provide tax advice or services.

Send in your questions!

Is hope an investing strategy? No, but as November draws to a close, many investors are hoping some holiday cheer in stock markets and a potential December rally.
In this episode Brian takes a look at what clues seasonality data may give us for stock market performance in December. It turns out that while, historically, December has been a very strong month for stocks, in recent years seasonality trends have been weaker, and a December rally has often failed to appear following a difficult year for stocks.
Charts:

1. December up more than any other month
2. December seasonality not as strong lately
3. A bad year or midterm can stifle a December rally

Tracking # 1-05349041

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"Yield Curve Inversion Reaches New Extremes" was the eye opening headline from the Wall Street Journal this week, and it certainly grabs attention and probably leads to some investor panic. But what does "yield curve inversion" actually mean for you as an investor, and exactly which yield curve is the better predictor of recessions?
This week Brian tackles what you need to know about the yield curve, its predictive abilities, and whether investors should be concerned.
LPL Chart of the Day
Tracking 1-05348396

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This week we're joined by Joe Perry, a loan officer with Precision Home Loans, who gives a honest assessment of where the housing market, mortgage rates, and housing generally stand in light of recent interest rate increases.
If you have questions for Joe from this episode, you can find him at www.therealjoeperry.com.

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