Investing involves risk. Depending on the types of investments, there may be varying degrees of risk.
Investors should be prepared to bear loss, including total loss of principal.
Announcer:
4 Your Money is brought to you by Nelson Corp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for, For Your Money. We’re joined by David Nelson, CEO of Nelson Corp Wealth Management. Welcome back, David.
David Nelson:
Thank you Brandy.
Brandy Auterson-Hurst:
So with the Fed making their next rate decision tomorrow, what do you think they’ll be looking at the closest?
David Nelson:
Holy cow. Whole bunch of things still come into play, but if we look at recent cooperation as far as the Fed officials, I mean they’ve been in unison as far as from the standpoint of we’ve got to crush inflation. And what we’re seeing in recent times is some variation as far as in that, do we skip? Do we pause? Are we done? I mean, what are the next steps? And so we don’t have unison as far as in the Fed ranks, which is probably a positive thing. But one of the pieces that’s really made it difficult is the unemployment numbers that just came out. The chart that I have today is illustrating that and what we’re looking at here on the top in blue is the unemployment rate. Now it jumped to 3.7. Doesn’t sound like that big a deal, but this is the steepest increase that we’ve seen since the start of the pandemic. The red shows essentially on the bottom, the year over year, which is now positive. And what this is showing is that that inflation is rising and this is certainly something that we should be concerned with.
Brandy Auterson-Hurst:
All right, so what does this mean for viewers and their investments?
David Nelson:
I think the viewers, again, should not make their decisions as far as on how they invest based on what they’re hoping that the Fed is going to do or not do. And so unfortunately, I think people have gotten caught up in it. It’s all over the news these days. And so bottom line, we need to separate that from that. You need to have a plan, you need stick to it. And kicked side the road as far as the Fed discussion and what they may or may not do.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.
David Nelson:
Thank you.