Economic and Investment Outlook for 2023
Will the U.S. experience a recession this year or shortly thereafter? In this report, we explore the outlook for recession and how stocks, bonds, real estate, and other assets are expected to behave. We discuss how investors should be positioned in 2023.
(more…)Read MoreWESCAP Q4 2022 Quarterly Commentary: High U.S. Household Demand, Tight Labor Markets, & Unexpected Shortages
Portfolio results for the last quarter of 2022 were generally positive, although 12-month returns were almost uniformly negative. High U.S. household demand, tight labor markets, unexpected energy and supply chain shortages due to the Russia-Ukraine conflict and repeated Zero-Covid China lockdowns contributed to higher-than-expected inflation. The aggressive Federal Reserve interest rate hike policy to bring down inflation had a very detrimental effect on growth stocks, longer-term bonds, and foreign currencies. Some of this reversed in the last quarter, consistent with fading recession fears and the post-mid-term election historical trend of strong 6-month returns.
(more…)Read MoreYear-End 2022 Planning Opportunity Checklist
Now is a good time to review year-end tax strategies and plan for the year ahead. Below are some items that should be completed or reviewed before year-end:
(more…)Read MoreWESCAP Q3 Quarterly Commentary: Rising Interest Rates & Recession Fears
The U.S. Federal Reserve increased the Fed Funds rate by 0.75% in September, bringing the total rate increases in 2022 to 3%. Over the next 6 months, 1.25% to 2% in additional rate hikes are expected; depending upon the path of future inflation.
As mentioned in our prior quarterly letter, such interest rate increases have been a good predictor of a recession, as has the recent inversion of the U.S. Treasury yield curve.
(more…)Read MoreGet More For Your Cash!
It’s a bad time to hold too much cash in your portfolio or bank account. The Federal Reserve is systematically raising interest rates to temper inflation and as a result many fixed income products are becoming more attractive. Cash that is not needed for your emergency fund and that is left in a savings account loses value from inflation and earns minimal returns. The average interest rate for a savings account is low, and currently sits at 0.13% according to Bankrate’s 9/21/2022 weekly institutional survey.
(more…)Read More