Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much.
Brandy Auterson-Hurst:
So the last couple of weeks have seen more movement in financial markets than normal with everyone paying really close attention to the Fed. So what are some of the dynamics at play here?
David Nelson:
Yeah, we certainly have seen more volatility as far as the past couple of weeks compared to the beginning of the year, and the big story really hasn’t changed. I brought a chart that is looking at payroll growth. This is so key as far as in many of these decision, it’s been slowing as you can see as far as the arrow pointing to the right there, folks. The market’s been basically interpreting most of this as negative since it’s holding back the Fed from cutting rates. Now on Friday, we saw the markets react positively to some latest job report, which basically shows that the trend growth in the labor market, one of the first data points that could give the Fed some ammo to lower rates.
Brandy Auterson-Hurst:
So what does this mean for viewers’ investments?
David Nelson:
Well, I think the biggest thing, it’s important to understand when there’s been a big shift, as far as regime shift, that they need to pay close attention to that. And what is that as far as today? It’s the zero interest rate environment that we’re now seeing disappear. We’ve seen rates go from zero to 5% in a very short period of time. And we’ve heard that interest rates are going to stay high for longer, and that’s certainly what’s unfolding as far as we speak. So be aware that rates probably aren’t going to plummet as much as people think in the foreseeable future, and that could be a big factor as far as in what type of investments that you choose to go in. That’s going to be tough on bonds and maybe okay as far as with other type of investments.
Brandy Auterson-Hurst:
All right, as always, David, thanks for joining us today.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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