The Fed Indicated Rates Are Dropping!

Jerome Powell indicated last week that rates will drop (just like a mic) in September. How much, you ask? Well, he didn’t overshare in that department. Unlike my neighbor who busted out his Tequila on Saturday night and shared the neighborhood gossip. No, the Fed plans to review the data, and make a last minute decision, just like my toddler’s choice in dinner.

Where Do We Invest When Rates Drop?

Under normal conditions, investors begin to shift their funds from the bond market back to equities, which causes a rise in all markets. But here’s a list of common actions for investors when rates go down.

• Lock in high CDs, Treasuries, or Bond rates (conservative investors)

• Invest in REITS

• Invest in Small Cap Stocks and ETFs

  • This week’s video calls out some great Small Cap ETFS

• Continue DCA’ing Dividend and all other investments

Is This a Normal Market?

Short answer is…..NO. Ever since the pandemic, our economy has been far from normal. The stock markets are a reflection of human sentiment. And there’s no algorithm that can pinpoint human behavior. Yes, there are trends and there are obscure modeling charts that seem to come out of the woodworks each week that indicate 100% accuracy for what’s happening…….only to be debunked. My Gen-X genes tell me to be cautious of everyone and everything, and when it comes to my life savings, I think that approach is acceptable.

Personal Update

Many of you know that I have/had skin cancer (basal cell carcinoma) and it looks to be 100% removed. But my Gen-X genes are paranoid. Nonetheless, I’m very thankful we caught it early. PSA - get your checkup, and if you don’t like what the doctor is telling you, get a second opinion. I did, and I am thankful for it.

Vacation time - my wife and I are celebrating being healthy, so we are going to Italy in 2 weeks. I’ll be posting some of my original videos on YouTube as a throwback to why I quit my job and retired.

My Portfolio

I will be sharing a link to my portfolio breakout in the next newsletter or so. I’ve changed my newsletter format, and I’m trying to ensure all prior posts are saved for future review. Please bear with me as I’m making the changes.

Requests

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