In the News
Welcome to March, a time for renewal and growth, a time when we look forward to spring, when the days are growing longer, and the weather is beginning to warm. Unfortunately, February’s market performance felt more like atrophy, not growth. We saw stocks slide lower last month, despite posting solid gains to begin the year. The S&P fell more than 2%, cutting its year-to-date return to 3.4%.
At the end of January, investors had started to feel like inflation might finally be waning, but then we saw inflation expand again in February. The Fed has reiterated its desire to hold inflation at 2.0%, but with evidence that the economy can withstand further tightening, Chair Jerome Powell has made it clear that more interest rate increases are likely.
A sizeable portion of the economic news recently has been contradictory, resulting in a lot of uncertainty (and the inability to clearly determine what direction the economy is headed). In times like these, it's important to review your financial plan and remember that we are investing your money with your specific goals in mind.
As April 15th draws near, we'd also like to remind you to make your annual IRA contributions if you haven't done so already. Depending on your situation, they may be deducted from your taxable income. Many of our clients find it easier to set these contributions up automatically on a quarterly or annual basis; if this interests you, let us know and we'll get you setup.
As always, we’re here for you. If you have concerns about current economic conditions, questions about finances, or need to chat about taxes, just give us a call.
info@firstfinancialag.com
(631) 689-1515
First Financial Advisors Group
http://www.firstfinancialny.com
Securities and investment advisory services offered through Royal Alliance Associates, Inc. (RAA) Member FINRA/SIPC. Additional Advisory Services offered through First Financial Advisors Group. RAA is separately owned and other entities and or marketing names, products or services referenced here are independent of RAA.
Welcome to February! The month started off with a 25 basis point rate increase by the Federal Reserve and another hawkish press conference by Chair Jerome Powell. While he acknowledged that "the disinflationary process" has started, he also noted that the FOMC still sees a need for "ongoing increases in the target range."[1] He also stated that it seems unlikely the Fed would cut rates this year, an opinion that the market seems to disagree with.
Regardless of who is right, we believe we'll continue to be in this extended period of volatility at least in the short term. We continue to position your portfolios for your specific goals and to take advantage of this higher interest rate environment where possible.
February also begins the runway leading up to tax season which means it's time to start putting together all the documents you'll need to file -- April 18th will be here before you know it. Below is a checklist to help you get organized.
Also please keep an eye out for another email from us later this week that will include a short client survey. As we plan our marketing and events calendar for the year, we would love to get your feedback.
Sending best wishes for warmth and sunshine - Spring is right around the corner!
As always, if you have any questions or concerns, please do not hesitate to give us a call.
[1] https://www.cnbc.com/2023/02/01/fed-rate-decision-february-2023-quarter-point-hike.html
info@firstfinancialag.com
(631) 689-1515
First Financial Advisors Group
http://www.firstfinancialny.com
Securities and investment advisory services offered through Royal Alliance Associates, Inc. (RAA) Member FINRA/SIPC. Additional Advisory Services offered through First Financial Advisors Group. RAA is separately owned and other entities and or marketing names, products or services referenced here are independent of RAA.
This message and any attachments contain information, which may be confidential and/or privileged, and is intended for use only by the intended recipient, any review; copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately and (ii) destroy all copies of this message.