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The dynamic duo (or should we say trio?) are back after the holidays. Lewis Cohen and Joel Bodden (Investment Advisors) join DJ Brent Harbor for another Wealth Wednesday.
It seems only natural to start with a quick market recap from 2023. For a year that started with a lot of fear and uncertainty around the financial markets, it ended up making quite a remarkable recovery. Going into 2024, it is looking a bit more optimistic as the S&P500 has hit record highs again around mid-January.
What will happen when the Fed eventually starts cutting rates? Money market funds have been quite lucrative investments with very little risk while the interest rates were up. However, with the Fed expected to cut rates this year, money market funds could see their returns potentially drop. Some investors may find themselves shifting back into the equities markets, seeking higher returns. Fixed-income bonds can benefit from potential rate cuts. Lewis discussed the relationship between bond prices and yields, and how a price “bump” can occur when rates go down. Listen to the clip.
People may think that not investing at all means there is no risk of losing your money, however, that comes with its own risks as you may devalue your money over time due to inflation.
Many people know they need to invest their money to grow their wealth, however, they spend a lot of time wondering when the “magic” moment to invest is? Spoiler alert: it’s probably sooner than you think! If you worry about dropping your money into the markets all in one go, Joel will discuss something called dollar-cost averaging, a technique that can smooth out market fluctuations and make investing less intimidating.
Finally, Joel will remind us all about the importance of taking control of your finances. Having a clear understanding of your financial situation is crucial for making informed decisions and achieving your goals.
The information contained in this article is for information purposes only, and represent the views of the author. It is not intended as specific investment or financial advice, or a recommendation or solicitation to buy or sell any security. Any investments or strategies listed in this article may not be suitable for all investors. Past performance is not indicative of future performance, and as with any investment, prices may fluctuate. It is recommended that advice is sought from a qualified investment professional prior to implementing any financial plan. LOM has made every effort to ensure that the contents herein have been compiled from sources believed reliable, however LOM does not warrant the accuracy, adequacy, timeliness, or completeness of this information expressly disclaims liability for errors or omissions in this information.
