Today’s Banking Environment
The news of bank runs in March caught much of the financial sector by surprise and created confusion among the American public. To help put the news in perspective, we’ve assembled a brief explanation of what happened, a list of some the wider effects, and a reminder of smart banking practices. As always, ShankerValleau is here to help. Please don’t hesitate to reach out to us if you have questions as current events unfold. What Happened? The biggest shockwaves have come from banks that have been holding exceptionally large reserves of low-yielding bonds in today’s higher interest rate environment. In …
Is Inflation Jeopardizing Your Financial Dreams? (Part 2)
Inflation is in the headlines and on our clients’ minds. In Part 2 of our two-part inflation series, we explain why forecasts for inflation remain fuzzy and how investors can prepare for a concern that may never materialize. For investors, it’s important to take a step back and look at the big picture before acting on breaking news. But what if inflation does get out of hand, and stays that way for a while? The Federal Reserve has been suggesting rising rates should wane. We hope they’re right. But we also know the future remains uncharted. Nearly any outcome is …
Is Inflation Jeopardizing Your Financial Dreams? (Part 1)
Inflation has been a frequent question in our client financial checkups this summer. The specter of inflation is on everyone’s minds, and rightfully so. As of July 2021, the Consumer Price Index was up 5.4% from 12 months ago. But consumer pricing has been in the headlines since the spring, with eye catching numbers reported as early as May. In this two-part series, let’s take a closer look at what to make of all the commentary, and what you can do about it as an investor. First and foremost, we caution against succumbing to fear or panic in the face …
