Weekly Update:

Good morning!

The economy continues to move forward; the unemployment rate is at a new record low rate of 3.5% due to an estimated 7 million jobs created in the last three years. Wages have improved, with the average hourly earnings growing at a 3.1% annualized pace.  Additionally, job openings (positions currently open) are closer to 4.5%, which results in a net shortage of workers.

When everyone has a job, it is a bit less likely they will default on loans, especially if collateral values (i.e., a home) continue to increase.  Housing starts are still low, based on my expectations, but pricing is higher than I expected. Again, this is a result of a tight labor market.  There are not enough home builders or trades.

Brexit is back in the news, and a general UK election is taking place on Thursday, December 12th.  The expectation is that Boris Johnson’s party will succeed in getting a majority and that Brexit will be a reality in January.  Stay tuned, as this is a significant modification to the EU.

Contact your MFA advisor to discuss ways to grow profitability in a low yield environment.  All of us at McQueen Financial are dedicated to your long-term success.

Have a great week!

Charley

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