Tag Archives: Higher Rates

Q 3 2016 Newsletter and Video Released !

As Brexit likely stalls our main theme of the Newsletter… we think we are correct in our analysis.

Here are a few of the topics in the newsletter….

  • Eventual higher interest rates will help, not hurt our economy.
  • Rates have been raised during elections years.
  • Trivia Crack is our App of the Quarter
  • What we are doing for the Summer! – Client favorite
  • Complete – all encompassing list of needed documents for Wills, Estate Planning and Trusts

But wait there is more….

A Video review too — Yep

 

Hope you enjoyed our silly introduction humor!

Have a great day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

It’s been a long time …. since rates have been increased

Later this week – (actually TODAY – this post was set to go out on Monday but did not), Janet Yellen, head of the FOMC (Federal open market committee) are set to do something many have never seen before.

 It’s been a long time

It’s hard to believe, but it’s been almost 10 years since short-term rates have been increased. Given this fact, the end of the quarter, AND the end of the year, it’s not surprising capital markets are a bit jumpy. It will be interesting to see if the Fed does increase rates, which we have hoped for some time. A measly .25% will make very little difference to the overall economy, and may actually help gain confidence, setting the stage for potential slow and steady continued increases.  The Fed has reiterated that they are data dependent …. Making further increases unpredictable, at least getting off of zero, again in our opinion, is a good start.

Fed Funds Rate 10 yr 11 -15

It would not surprise us, to see Capital Market’s put on a happy face after the FOMC meeting later this week. Until then, we will stay tuned!

John A Kvale CFA, CFP

http://www.jkfinancialInc.com
http://www.Street-cents.com
8222 Douglas Suite 590
Dallas, Texas 75225

 

 

Hard Core Investment Roundtable Update … Higher Interest Rates

My hat is off to all of you who travel extensively. You have very special skills. After several trips, I am ready to be home for a while.

Austin Investment Update

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Earlier this week, after spending two days of “Hard Core” detailed investment roundtable discussions, we are even more convicted in our thoughts.

  • Certain areas of the capital markets are inflated, others not so much
  • A rise in rates could result in a headwind (drop in values)
  • Company managers are doing very good, with little wiggle room

Higher Rates Later ?

Janet Yellen and Crew (Federal Open Market Committee – FOMC) released the minutes of their last meeting on Wednesday of this week. Their posture was “at the time” slightly leaning towards a slower rate rise.

Ahhhh, but the green light jobs report came AFTER their last meeting.

Rates are going to rise soon, in our opinion.

Have a Great Weekend … Looking forward to spending time at home with my gang .. be sure to do the same!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

Get ready for higher interest rates, FINALLY !

Janet Yellen and the FOMC (Federal Open Market Committee) finished their two-day meeting smack in the middle of last week … GREAT NEWS!

Higher Interest Rates in 2015

This Wednesday the FOMC released their statements on the economy, and most importantly their estimate of short-term rates in the future.

Check out this new chart: Each Dot is a vote by FOMC members!

10-14 Fed Dot Chart

The average estimate for short-term rates in 2015 is now 1.27%

Think about that for a moment….What a relief to get SOME return on our short-term money, FINALLY.

Side effects and immediate responsibilities

  • Time to lock in any floating debt rate as it will most likely be more costly next year
  • Not time to stretch for yield in bond land as longer term instruments may be under pressure
  • Corporate executives, float that debt quickly, the window is closing
  • Still not time to go into High/Junk Yield Bonds
  • Finally time to earn more on our short-term “safer” investments

Have a soon to have more money in our pockets, Great Day and super weekend!

John A. Kvale CFA, CFP

PS Ok…now let’s get there slowly, NOT abruptly !

PSS Let the weaning begin !!!

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225