Weekly Update:

Good morning!

Today’s Title: Clarity, concern, and contraction.  The three C’s by Charley.

Clarity:

– The FOMC stated that they are not going to raise interest rates.  We are in a neutral position.

– The 600+ day investigation into Trump and Russia is done.

Concern:

– The bond market reacted to the FOMC news by officially inverting from the 3-month US Treasury to the 10-Year US Treasury.  This is a traditional indicator that a recession is heading our way in about two years.

–  Brexit is a full-fledged disaster.

Contraction:

– The EU is struggling with the uncertainties, and the European economies are all struggling.

– Japan is still “slow” due to their demographic issues (lots of retirees and few young people).

– Chinas growth is much slower than it has historically been.  The prolonged trade war with the US is hurting growth.

– The USA is growing but at a slower pace.  After great GDP growth for the last two years, we are expecting a much lower 2.1% rate next year.

Contact your MFA advisor to discuss ways to grow profitability with an inverted yield curve.  All of us at McQueen Financial are dedicated to your long-term success.

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