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. Appreciate it.
Brandy Auterson-Hurst:
So it seems lately that stocks have gotten a second win this year. What has been driving the recent performance?
David Nelson:
Well, financial markets in general have been acting much better the past few weeks. Largely speaking, it’s been basically built around interest rates and where interest rates have been moving. The most recent inflation numbers that came out just literally the last few days has certainly had markets excited. From the standpoint, it looks like, again, we’re making progress as far as driving down inflation.
Now, I brought along a chart today, and that chart shows that how the thinking has changed just in the last month. The yellow line on the top is basically looking at the path of rate expectations four weeks ago. Fast-forward to the green line, and the green line is looking at after the CPIs. In other words, the data that came out about inflation and how things have changed. Now, basically what it looks like, it’s pretty dramatic in looking at it now. Six months out, the market is now expecting a rate cut, where just a couple weeks ago we were looking at an interest rate increase. Very dramatic. I’ve never seen anything like this in 40 years.
Brandy Auterson-Hurst:
Okay, so what does this mean for investors and their savings?
David Nelson:
Well, I think today’s market expectations are not a foregone conclusion, but certainly if we look at sentiment and how it’s shifted as far as short-term here, this could be very positive for stocks.
Brandy Auterson-Hurst:
All right, David. As always, thanks for joining us.
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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