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Investors diversify portfolios to help mitigate risk.  In addition, since the future is unknown, diversification can help provide investors with the opportunity to share in the appreciation of different asset classes without trying to guess which investments will outperform over the short-term.

The National Retail Federation projects Americans will spend over $12 billion dollars on Halloween this year, surpassing last year’s record of $10.6 billion.  Last fall, most economists and money managers were on the lookout for a recession in early 2023.  Instead, the economy has continued to grow.  In fact, growth has been incredibly strong with the US economy growing by

Looking for Cracks

“If rates continue to rise the way they’ve been rising, there will be a financial accident.  Something will break and that will get the Fed moving in the other direction,” said David Lebovitz of JP Morgan on October 2, 2023.

Looming over the country this weekend is a potential government shutdown. We have been here before, but the circumstances and obstacles are unique. The Senate passed a bill to keep the government running and the House has only until midnight this Saturday to approve a spending bill. If an agreement is not made, the federal government will shut down on Oct. 1^st.

August 9, 2023

I am sorry Dave, I’m afraid I can’t do that….

“The only way to stop the political outrage is not to play it.”  ~Carmine Savastano

In Minneapolis, we have already had one blizzard in April, and more snow potentially is on the way as we endure the third snowiest year on record. As many people here wonder what April blizzards portend for flowers in May, at Bond&Devick we are wondering what bank closures and tightening credit standards portend for interest rates and the markets.

Most Federal Reserve rate hiking cycles tend to end when the economy tips into a recession or when something breaks and the Fed changes course to prevent further issues.  The economy does not seem to be currently in a recession, but something broke and in a big way.

The stock and bond markets started to cozy up to the idea that employment would begin to soften, and wages would moderate even more.  This would reduce inflationary pressures and allow the Federal Reserve to reduce interest rates at a faster pace than was previously expected.