Debt Ceiling Up – Rates Steady

July Market Update – Debt Ceiling Rising while Interest Rates Hold: Much has happened since our May market update.

Debt Ceiling Raises

First of all (drumroll please…) they raised the debt ceiling. As far as the market is concerned, that is good news, so you can take a sigh of relief.

Now, you might have other opinions on whether or not that is a good thing, if you’re like us, we wish they would stop spending so much too.

But it was pivotal that they raised the debt ceiling as you saw the markets rally in appreciation.

Interest Rates Hold

On the other hand, what the markets didn’t want to see rise was interest rates, so there was another sigh of relief when the pause button was pushed on raising rates.

This was the first time they didn’t hike the interest rates for a while. However, they left some vague wiggle room stating they will wait and see what they do later in the year.

It seems they’re trying to have it both ways and the market really isn’t buying it. So we’ll see what happens as things move along.

Inflation- Up or Down?

The next topic that affects the market, as well as everything else, is inflation.

While you’re probably hearing that inflation is lower and coming down, it’s important to know that most of those inflation numbers don’t include some of the most volatile prices on everyday items such as food and energy costs, which were actually up in May. This is where the disconnect happens between what they are saying and what you are experiencing.

On another note, when it comes to gas prices, you’re seeing a little bit of a decline. Now, that’s not because the supply is up, it’s because the world economy is slowing down, which means less demand. So declining gas prices may not actually be a good thing in this context.

Facing the Headwinds

Any and all of these things, inflation, interest rates, debt ceiling… are headwinds that we’re going to face. That is why you have us, that’s why you have a plan in place.

You want to have a captain of your ship there to make sure that no matter what’s happening, you’re being taken care of.

If you’re not sure what’s going on and how your accounts are managed, let’s chat.

We’re always communicating about what we’re doing, why we’re doing it, why the changes and trades are happening, and how we’re positioned in light of everything that’s going on.

If you want to review, make sure you reach out to us.

If all you are hearing is cliche statements like, “You’re in it for the long haul” or “Over time you will be fine” those are statements of half-truths.

Your team needs to know what’s happening and position you to deal with any of the headwinds we are facing.  That is our job as the captain of your ship!

July Market Update – Debt Ceiling Rising while Interest Rates Hold: If you have any questions, please reach out.


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