Bob's Blasts

July, 2019



Many of you have setup your client portal access for eMoney and linked your outside accounts.  For anyone with outside accounts, especially those using CashEdge, please reach out to Eric for assistance in setting up eMoney (if you haven’t done so already) as CashEdge will soon be discontinued.   Anyone without outside accounts interested in accessing the client portal, please contact Eric to get setup. We are planning to utilize this software during future review meetings and feel it could be a valuable tool to help you see your entire financial picture in one place.  



The S&P 500 just finished its best first half of the year in 22 years and its best June since 1955.  Slowing economic data, continued trade tensions and decelerating earnings growth have yet to derail the current bull market which is now over ten years old. 

Fixed income markets also continue to rally as the Federal Reserve has completely reversed course and the probability for a rate cut now stands near 100 percent.  In December of 2018, Fed funds futures signaled two to three rate increases in 2019.   Slowing economic data and further uncertainty around trade has quickly shifted expectations to three rate cuts for 2019.  Consensus predictions turned out to be completely wrong, further evidence that predicting the short-term direction of the market and interest rates is nearly impossible.  


Interest Rates

There have been both positive and negative consequences from declining interest rates and the potential for rate cuts later this year.  Many savings accounts have started reducing interest rates and may continue to do so if the Federal Reserve moves forward with rate cuts.   CD rates have also been declining.  For any cash not needed in the next 12-18 months, you may want to consider locking in a short-term CD as savings rates may decline further. 

On the positive side, lower rates have once again made mortgage refinancing attractive as 30-year mortgage rates have dipped back below 4 percent.   For anyone with a mortgage rate above 4 percent, this may be a good time to consider refinancing.  Please reach out if your rate is above 4 percent, and we can help with finding a low-cost option to refinance.   


Your Priorities

The last year has provided further evidence of the need to pay less or no attention to “expert” forecasts.  We still believe the best way to prepare for the future is to have an asset allocation suitable for your risk tolerance and goals.  Downturns will continue to happen; however, the cause of the downturn is usually irrelevant.  Whatever caused a downturn has already happened, and the direction of the market is driven by tomorrow’s news which no one knows.

Appreciate the good times while they are happening and try to ignore the negativity when the bad times come.   Get out and enjoy the weather, take a trip, spend time with family and friends or just do something that makes you happy.  Focus on the things that bring you joy and not the things that are out of your control.       

Our goal is to help ensure you have confidence knowing you are on track to reach your goals in good times and bad.  Please touch base if you have questions or feel unsure of your progress toward reaching your goals.  


This material is meant for general illustration and/or informational purposes only.  Views expressed in this newsletter may not reflect the views of Royal Alliance Associates, Inc.  It is our goal to help investors by identifying changing market conditions.  However, investors should be aware that no financial advisor can accurately predict all of the changes that may occur in the market.   This material should not be relied upon as investment advice.  Investors should note that there are risks inherent in all investments, such as fluctuations in investment principal.  Past performance is no guarantee of future results.  There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. This article contains forward looking statements and projections.  Past performance is no guarantee of future results.