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Stocks Gain
Uncertainty about the direction and timing of Fed rate cuts is causing stock markets in the United States to charge and retreat. U.S. stocks rallied for five consecutive months (anticipating rate cuts early in 2024) before retreating in April after higher-than-anticipated inflation suggested the Fed might delay any rate reductions.
Markets retreated early last week on concerns the Fed might take a more hawkish tone following the Federal Open Market Committee (FOMC) meeting – but it did not. Following the meeting, the FOMC release stated:
“Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective…The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
While the Fed left its rate policy unchanged, it eased a bit using a different policy lever. “…[FOMC] policymakers gave a green light to slowing the pace at which the Fed is shrinking its Treasury holdings, which may modestly work against the rise in market interest rates,” reported Jed Graham of Investor’s Business Daily.
Markets found the Fed’s moderate tone encouraging, and optimism expanded after the U.S. employment report suggested the labor market might be cooling off.
“The indexes bounced back from early-week lows after the employment report revealed that the U.S. added fewer jobs than expected in April—but enough to indicate a still-growing economy. For now, that could help keep a lid on inflation, prevent the Federal Reserve from needing to raise rates again, and maybe even allow it to cut them,” reported Jacob Sonenshine of Barron’s.
Major U.S. stock indices finished the week higher, according to Barron’s. The U.S. Treasury market rallied, too. Yields on longer maturities of U.S. Treasuries moved lower over the week.
Source: John Hancock Investment Management
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We continue to hear more and more stories about clients running into scammers. Some attempts were successful while others were not. We want to continue to raise awareness and encourage you to communicate to your family and friends likewise.
Some of the scams we have seen recently include:
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Impersonation of the IRS. The scammer tries to convince you that you owe back taxes and if you don’t make payment immediately (often involving gift cards), they will send someone out to arrest you.
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Computer Scams. Something pops up on your computer indicating your computer has been hacked, infected with a virus, or some other allusion to make you think something is wrong. Often a number will pop up on the screen for you to call.
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Missed Jury Duty. In this scheme, the scammers call claiming you missed jury duty and claim there is a warrant out for your arrest. They may pressure you into staying on the phone and ultimately want you to come post a cash bond.
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Wiring of Money. Perhaps you receive an email with wire instructions when you are doing something like closing on a house. MAKE SURE TO CALL and verify with the receiving institution the details of the transmission (account number, routing number, etc).
There are many red flags that should raise alarm if you encounter a scammer. Often these include:
- Some sort of urgency that a matter must be resolved today. This includes a payment that needs to be made right away or perhaps it is your bank account that has been breached and money needs to be withdrawn.
- Pressure to not get off the phone. There may be a threat of a consequence if you hang up.
- Attempt to let the scammer on your computer. They may be posing as technical support. They could be acting as if they are with the bank or a company such as Apple. These folks pretend to seem helpful and may even spend many hours trying to “help” you.
- Spoofing a website. They encourage you to google search to confirm a phone number or news headline. They may even show you a website/online news article. THESE WEBSITES CAN BE FAKED. This includes a clone of your bank’s website.
- Any sort of claim you need to withdraw cash from your account and go to a kiosk or ATM to make a deposit or payment (to buy bitcoin, to post bond, to settle a bill, etc.).
- Claiming you can make payment using gift cards.
Many of these scams involved tens of thousands of dollars. These scammers are good at what they do and can promote a very convincing story.
If you find yourself dealing with anything that is unexpectedly urgent or suspicious from someone you don’t have a relationship with, we encourage you to take a pause. Hang up if they are pressuring you. Discuss the matter with a trusted person in your life.
If you do feel there is something that needs to be resolved, use a different device to look up an actual phone number (such as a local bank branch) and make an outbound call yourself (don’t rely on any number they have given you). Even if you have a relationship, confirm it is legitimate by calling that individual or even try and to meet in person.
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Beneficiaries are the people who will inherit your assets –savings and investment accounts, life insurance policies, homes, cars, and other possessions. In general, there are two ways to name beneficiaries. You can:
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Designate a beneficiary on an account. For example, when you signed up for a retirement plan at work, you were probably asked to name a primary (and, sometimes, a secondary) beneficiary for the account. If you have life insurance or a health savings plan at work, you probably named beneficiaries for these accounts, too.
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Name an heir in your will. As part of the estate planning process, people write wills that indicate who should inherit various assets.
What many people don’t understand is that designated beneficiaries trump wills.
“Wills are malleable documents, subject to interpretation from probate court and contestable by family members demonstrating an interest in your estate (even if you don’t list them in your will).
Conversely, your contract with a financial institution creates an unimpeachable beneficiary designation. The financial company and relevant laws ensure your beneficiary will receive payment, even if other family members try to claim the benefit,” reported Ashley Kilroy of SmartAsset.
If you’re itching to go online and see who you named as the beneficiaries for various accounts, you should. It’s important to review your financial accounts – life insurance policies, retirement plan accounts, health savings accounts, and investment and bank accounts – and confirm that the correct beneficiary is named.
The good news is that checking designated beneficiaries is easier than it used to be. Just log in to your account. If your designation is outdated, you may be able to update the information by completing a beneficiary change form. If you have any questions, get in touch. We’re happy to help.
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AJ Advisors
www.ajadvice.com
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Phone: (615) 709-8709
Fax: (615) 505-3306
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John Stauffer, CFP®
Partner
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Andrew Quinn, CFP®
Partner
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Past performance does not guarantee future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product (including those recommended or undertaken by AJ Advisors, LLC), or any non-investment related content, made reference to directly or indirectly in this communication will be profitable, equal any indicated historical performance level(s), be suitable for your portfolio or individual circumstances, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. You should not assume that any discussion or information contained in this communication serves as the receipt of, or as a substitute for, personalized investment advice. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to their individual situation, they are encouraged to consult with the professional adviser of their choosing. AJ Advisors, LLC is neither a law firm nor a certified public accounting firm and no portion of the content herein should be construed as legal or accounting advice. If you are an AJ Advisors, LLC client, please remember to contact the firm, in writing, if there are any changes in your financial situation or investment objectives or if you wish to impose, add, or modify any reasonable restrictions on our investment advisory services. Until so notified, AJ Advisors, LLC will continue to rely on the most recent information provided. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available upon request. | | | | |
