Hello and Welcome to our December 2022 … Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!
Hope you enjoy!
December 2022 Video
YouTube
Financial Planning Tip(s)
Secure Act 2.0 – Passed on 12-27-22 Quietly …. Shhhhh we are working through the details
On December 27, 2022 a HUGE bill … over 4000 pages, was passed…. while not sweeping in our neck of the woods, there is one main adjustment….
RMD – Required Minimum Distributions are pushed out again to age 73! Not Kidding!
Capital Market Comments
Rate Increase – Fed Raised rates for the Holidays
In December the FOMC (Federal Open Market Committee) led by Jerome Powell raised rates, but only by .50% … but it was a raise…
Have a Great Day, Talk to You at the End of January – Happy 2023!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
M2 Turns Negative for the First Time and that’s a Long Time!
There are tons of measuring sticks out there…. almost all of which we look at and follow, at least at one time or another…..
What grabs our attention is when the measuring sticks do unique things….or have never happened before!
M2 – aka Money Supply
According to Investopedia M2 is best described as the following:
M2 is the U.S. Federal Reserve’s estimate of the total money supply including all of the cash people have on hand plus all of the money deposited in checking accounts, savings accounts, and other short-term saving vehicles such as certificates of deposit (CDs). Retirement account balances and time deposits above $100,000 are omitted from M2.
Check out the latest reading of M2
While close in 1994, it stayed positive, for the year 2022… M2 was a negative for the year for the first time ever!
Note also as compared to 1994, the rapid draw down in 2022…
Why are we watching this?
This draw down of money in the system may put pressure on certain risky players i.e. Companies that use Junk or High Yield Debt!
Just a heads up to let you know what we are watching!
Have a Great “M2 Analysis” Day!
John A. Kvale CFA, CFP
Share this:
Like this:
Leave a comment
Posted in Debt - Debt Management, Economy, FOMC, General Financial Planning, Investing/Financial Planning, Market Comments
Tagged FOMC, M2, M2 Money Supply, Money Supple, Money Veocity