The Markets Tick, Tock. Not everybody loves meetings and even fewer enjoy reading the minutes, but investors make an exception with the Federal Reserve. This week the Fed published the minutes from its August 1 meeting. While no changes were made to interest rates, the minutes did provide insight to how the Fed sees the U.S. economy. Key Insights:
While the Fed remains concerned about the risks of inflation, it also is concerned about slowness in the housing market. Home building has declined due to a labor shortage and to higher cost in materials from tariffs, according to The New York Times.
The Fed is content, for now, with their current policy stance of steady rate hikes, but are on edge as they wait to see how fiscal policy plays out in the data. The Fed is more likely to raise rates two more times this year given the strength of the economy. HOW WOULD YOU ASK FOR A RAISE? When CNBC asked business author Suzy Welch how someone should ask for a raise she explained, “The key…is an approach that includes research and emphasizes your achievements.” She recommended three basic steps:
This is sound advice. When Willy Appelman of Fast Company asked children at the Underhill Playground how they would ask a boss for a raise, the kids believed the keys to success were good manners, hard work, baked goods, and physical appearance. Here are some of their recommendations:
If you recently received a raise or a bonus (or expect to), you may want to give some serious thought to how you will to use the additional income – spend it, save it, or do some of both – and how your choices will affect your taxes. If you’d like to discuss your options, give us a call. Weekly Focus – Think About It “The tax advisor had just read the story of Cinderella to his four-year-old daughter for the first time. The little girl was fascinated by the story, especially the part where the pumpkin turns into a golden coach. Suddenly she piped up, ‘Daddy, when the pumpkin turned into a golden coach, would that be classed as income or a long-term capital gain?’” --Unknown P.S. Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added. Securities offered through Mutual Securities, Inc., Member FINRA/SIPC. 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Sources: https://www.federalreserve.gov/newsevents/pressreleases/monetary20180822a.htm https://www.wsj.com/articles/as-central-bankers-meet-economic-uncertainties-weigh-on-sunny-outlook-1535029200 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/08-27-18_WSJ-As_Central_Bankers_Meet_Economic_Uncertainties_Weigh_on_Sunny_Outlook-Footnote_2.pdf) https://www.nytimes.com/2018/08/22/business/federal-reserve-rate-hikes.html https://www.marketwatch.com/story/fed-minutes-show-support-for-september-interest-rate-hike-combined-with-anxiety-about-a-trade-war-2018-08-22 https://www.cnbc.com/2017/12/11/suzy-welch-heres-the-exact-right-way-to-ask-for-a-raise.html https://www.fastcompany.com (In the Video section, click on ‘Advice On How To Get A Raise... From Kids’; responses occurred at 29, 33, 44, 51, and 54 seconds from the start of the video) https://www.taxconnections.com/best-tax-jokes-and-quotes-ebook * These views are those of Carson Group Coaching, and not the presenting Representative or the Representative’s Broker/Dealer, and should not be construed as investment advice. * This newsletter was prepared by Carson Group Coaching. Carson Group Coaching is not affiliated with the named broker/dealer. * Weekly Market Commentaries are sent as mass email communications by the designated email address weekly_update@guidancewealth.com. * Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. 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Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. * Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce. * The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. * The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. * Yahoo! Finance is the source for any reference to the performance of an index between two specific periods. * Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. * Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. * Past performance does not guarantee future results. Investing involves risk, including loss of principal. * You cannot invest directly in an index. * Stock investing involves risk including loss of principal. * Consult your financial professional before making any investment decision. * Consult a qualified tax advisor for specific individualized tax advice. Comments are closed.
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