Be honest. We have the science, the technology, and the wealth. What we don’t have is the will, and that’s not a reason that history will accept.
Predicting Fed actions has become a little too easy. With eight hikes since late 2015, Chair Powell’s measured and predictable approach to normalizing interest rates in the US has been subject to much criticism on both sides. The controversy centers around the well described but seldom seen neutral rate of interest. Politicians and economists often have differing views on this subject. Both sides proclaim to be growth oriented but see risks differently. Some things never change, and the need for FRB independence is one of them. Mr. Powell’s recent comments have added to the speculation that the continued upward rise in rates may be nearing a pause, as oddsmakers recently adjusted the line on the number of future hikes.
In late November Mr. Powell stated:
“Interest rates are still low by historical standards and they remain just below the broad range of estimates of the level that would be neutral for the economy – that is neither speeding up nor slowing down growth.”
The market was euphoric on Friday, as investors took Powell at his word. Remember the Federal Reserve has a mandate to control inflation. The number they have for an inflation target is 2% and Federal Funds Rate is close to that number now. Finally, one thing worth noting, history has not been kind to any Fed Chair who has let inflation out of the bag. Mr. Powell will not want to be remembered the same way we remember a few former Chairmen. Let’s trust he will be diligent and objective in his conduct of monetary policy.
SCI HIGHLIGHTS
SCI Monthly Webinar
SCI leaders Bob Dunne and Jim Baldwin will discuss SCI heading into 2019
Tuesday, December 11th
@ 12:00 pm CDT
Join from PC, Mac, Linux, iOS or Android:
Click here for Conference Login
Meeting ID: 325 159 0655
Dial In Audio: 669-900-6833
Ocean Park’s Market Minute
Listen to Ocean Park CIO Terri Spath discuss the current outlook on tail risk, why that tail might be getting fatter and how Ocean Park takes steps to mitigate that risk.
Click below to view this week’s Market Minute:
https://www2.sierrainvestment.com/2018/nov/30
SCI Video Content Coming…
Stay tuned. LSIA VP Bob Dunne and LSS Business Development Associate Zak Sandeman are working on multimedia content for you and your clients to provide more color on the specifics of the Salt Creek Investors asset allocation strategy.
Feel free to reach out to Bob Dunne to make any requests or suggestions:
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Copyright © 2017 LaSalle St. Investment Advisors, LLC., All rights reserved.
As you consider the information provided with the Salt Creek Investors Asset Allocation Platform (the “Program”), please review the following:
The information and descriptions provided about the Program are for educational and information purposes only and should not be used or construed as investment advice, an offer to sell, a solicitation of an offer to buy, a recommendation for any security, or suggest any course of action. LaSalle St. Investment Advisers (“LSIA”) does not guarantee that the information or descriptions supplied about the Program are complete or timely. LSIA makes no warranty with regard to any results obtained from the Program or its deployment. LSIA is not responsible for any direct or incidental loss incurred by relying on information provided about the Program. The allocations presented herein are illustrations and completely hypothetical. None reflect actual investments or investment results and do not reflect allocation of any individual portfolio. Asset allocation and its results vary over time. Other allocations or asset investment categories not offered in the Program may have characteristics similar or superior to those illustrated. Past performance of any model or allocation is no prediction of future results. Neither the Program nor any system/model can predict the future of any market or price movement in a market. Diversification and asset allocation do not guarantee against the risk of investment loss, including risk of loss of principal. Information provided regarding the Program is as of the date of publication and may change at any time without notice. Information has been included which was obtained from third parties and is believed to be reliable and complete. LSIA does not warrant the accuracy or completeness of such information. LSIA is a registered investment advisor and does not provide tax, accounting or legal advice ‒ the information and/or descriptions provided do not constitute such advice. More information regarding LSIA and its investment strategies can be found in the LSIA brochure, ADV Part II, which is available online or through LSIA. Asset allocation may not be suitable for all investors. Before deciding to invest, potential participants should consult with an investment adviser to determine an appropriate investment strategy and methodology which meets the investor’s specific financial needs, objectives, goals, time horizons and risk tolerance. The information and description provided herein has been made without consideration of any investor’s particular suitability for investing in the Program. Asset allocation also involves investment in various asset classes which are not insured by the government. Investing in fixed income and/or high yield securities involves additional concerns including interest rate risk, credit risk and reinvestment rate risk. Investing in securities outside the United States may entail greater risk than investing in domestic U. S. markets. These risks typically include political and economic uncertainty of foreign countries as well as currency exchange fluctuations, including foreign currency exchange rates, political risks, different methods of accounting, financial reporting and foreign taxes. The prospectus accompanying a security should carefully be reviewed before investing. The services described herein are available to persons residing in any state where they would otherwise be contrary to local law or regulation.