With a lot of focus on interest rates, local Edward Jones Financial Advisor Jason Spanhook says cuts are not likely until later this year or next:
“A lot of focus today is on interest rates and what the federal government is going to do with those. A lot of people thought they would be cutting rates here soon, probably not likely to happen until later this year or early next year. It has a big effect on the investments we do. Investments are doing very well, but it is important to know that if and when the feds do cut rates, there are certain investments you probably really want to own before that happens. Those are the conversations that we are having with our clients.”
As it is an election year, the question arises of how markets will be affected. Ryan Painter, local Edward Jones Financial Advisor, reports that typically things work out pretty well:
“Historically, there is not an identifiable trend that you can say that is always the rule, always the way it goes, in fact, maybe even the opposite. It tends to be that in election years things go pretty well, often. In fact we could go back and look, we have had conservative presidents, we have had liberal presidents, we have had neutral presidents, fiscally conservative, all those different things, and the markets continue to grow throughout all the time, no matter what has been going on. At the end of the day, the market is made up of individuals like you and me, we buy stuff, companies are profitable, and if they are profitable those businesses are going to do well and that gets reflected in the markets.”
Spanhook adds that statistically speaking, the markets respond favorably during an election year, regardless of who lands in office.
