Interest Rate Outlook for 2015

photo credit: bhautikjoshi via photopin cc
photo credit: bhautikjoshi via photopin cc

 

We get two big questions every year: 1) What do you think the market is going to do? 2) What are interest rates going to do?

One is easier to predict than the other. Long term, both go up from here. Though historically, rates had been falling for 30 years and can only go up and the market goes down for short periods but has always recovered.

Back to question #2. What are interest rates going to do? Kathy Jones, a fixed income specialist at Charles Schwab, sees rocky times ahead in the fixed income markets. Tighter fed policy implies that real and inflation-adjusted rates will rise.

“The liquidity party of the last 6 years appears to be coming to an end.”

Give us a call to discuss how this might impact your planning.

Why We Love and Hate Facebook

photo credit: angermann via photopin cc
photo credit: angermann via photopin cc

 

Individually, we love Facebook because it is a great place to post pictures of our children, catch up with old friends, and see funny pictures of cats and dogs. We hate Facebook because of product pushing and nefarious ads disguised as posts, which force us to buy things we don’t want.

Our company loves Facebook because they sell ads…lots of ads. And they are now finding a way to sell more of them.

Coming soon, Facebook will be curbing “overly commercial posts.” We can only imagine this will “ad” to their bottom line.