Why We don’t like to Move Money on Fridays – Break In – Inverted Yield Curve Update

Break In – On Friday the Yield Curve Inverted for about three hours – we have spoken at length on this subject, but want a little more time to see market participants reactions as well as Fed officials before making a current update.

As a reminder the Inversion of the Yield Curve has a strong recessionary signal some time in the future, frequently years in advance –

Friday’s inversion triggered a series of sell programs that clearly did not do their homework on the possible eventual timing of a recession.

With a Newsletter already in print – coincidentally we had much talk about recessions, and even a definition. The two hour inversion did mess our Newsletter up a bit as until Friday it had not inverted – we will update you more with clarity soon!

Back to our regularly scheduled program/post…

Why we don’t like to Move Money on Fridaysfriday-1270362__480

As a weekend nears, specifically Friday … many’s favorite day of the week, we tend to dislike the movement of funds.

The reason is two fold:

  1. If something goes wrong, the weekend can be/seems long to determine a correction
  2. Skeleton crews frequently man the ship on Friday’s- especially during the summer

Our absolute least favorite movement of funds is sending to all new instructions on a Friday – we rarely do this – and never do before a long/holiday weekend!

There are of course times that money just HAS to move on a Friday, such as the closing of a home (in an abundance of caution, we frequently send funds on Thursday) or a last minute quick fill up of cash.

Regularly scheduled deposits are fine as the calendar determines this and being on such a regimented event, trouble is less likely.

Deposits or draws as we like to call them are a different story. When we are pulling funds from another account, we see the flow of funds from our end and can easily Shepard/see problems.

In a safe over sorry posture, look for us to recommend Thursday or our favorite day, Monday, for the movement of unscheduled funds.

Have a Great “No Friday Money Movement” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

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