Welcome to our Weekly Wealth of Knowledge for September 11th, 2024. It is certainly a somber day in our history, to which we say “Never Forget” those we lost or those who suffered that day.
As we look forward together, here we bring you insights on managing your financial foundations throughout daily life, while sharing community good news and highlighting important market updates.
This September, our Insights focus is on “Back to School” where we offer ideas and resources designed to support your individual, family and small business milestones and goals. In this issue:
- Good Money Habits For Kids (5 min read)
- Best In State – Top Next Gen Wealth Advisors (2 min read)
- US Economy: Passing The Tests (2 min read)
If you enjoy our Weekly Wealth of Knowledge, don’t forget to visit us on Facebook, Linkedin, and X for more resources and updates.
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Good Money Habits For Kids
Incorporating good money habits into your child’s routine is crucial for setting them up for future financial success. Early education about money—understanding its value, how it’s earned, and the difference between needs and wants—provides a strong foundation.
Start by introducing simple concepts through real-life examples or play, and then move on to practical tools like an allowance to teach budgeting and saving. Encouraging wise spending, involving them in family financial discussions, and introducing earning opportunities foster a sense of responsibility and appreciation for money.
Additionally, instilling the importance of giving and using technology wisely can further round out their financial education. By modeling good financial behavior, families can reinforce these lessons and help children to become financially savvy adults.
By nurturing these habits from a young age, you are not only preparing your children for financial independence but also instilling values that will serve them well throughout their lives.
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Best In State – Next Gen Advisors
Moneco Advisors is proud to share that we are ranked in the Best-In-State Next Gen Wealth Advisors category last month. The methodology for this third party ranking (no fee was paid to participate) is below in our Learn More link.
Our clients come first. And we pay special attention to our valued Moneco clients who are individuals, families and/or small business owners of all ages. It is with them in mind that we are dedicated to developing our advisors, service teams and relationship managers—across all generations.
We believe there is always the right someone here for any client who comes to Moneco for financial planning and/or investment management. As we consciously grow as a firm focused on client resources, we remain focused on what our collaborative experience tells us that our clients may need, while developing the resources and multi-generational team members to serve our variety of clients.
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U.S. Economy: Passing The Tests
With fall upon us and students back in classrooms, it seems like a good time to reflect on the various tests that the U.S. economy and stock market have passed recently. When the economy and markets are tested, the foundation for future growth and capital appreciation gets stronger.
The Federal Reserve (Fed) engineered one of its most aggressive rate-tightening campaigns ever in 2022 and 2023, providing a tough test for the U.S. economy. Amid widespread calls for recession, the economy chugged right along, powered by consumers who continued to spend, even as rates rose. How did consumers do it? Stimulus helped, though we probably got more than we needed. So did low fixed-rate mortgages. Regardless of how it happened, and despite the Fed’s mixed track record, the economy passed this test.
The economy also seems to have passed its inflation test. The widely followed Consumer Price Index, which peaked at 9.1% year over year in June 2022, dipped below 3% last month. Same with the Fed’s preferred inflation measure (core personal consumption expenditures excluding food and energy). In response, the 10-year Treasury yield is down nearly a full percentage point since its April 2024 high, and mortgage rates are down even more. Call that a passing grade, though one could still argue for an incomplete.
The stock market also passed a tough test recently. On August 5, the combination of a weaker-than-expected jobs report for July and too much borrowing from some overly complacent traders (much of it in Japanese yen currency) caused a sharp market sell-off. Stocks have since bounced back on subsequent evidence that the economy continues to grow steadily. In fact, U.S. gross domestic product grew at an impressive 3% annualized rate in the second quarter. Despite that bout of volatility, major stock market benchmarks from both Russell and S&P produced modest positive returns in August. Gains weren’t just among the big tech companies, as performance has broadened out.
Perhaps the toughest tests for markets lie ahead. The upcoming election and related policy uncertainty could be a catalyst for a correction. A tougher geopolitical test could come from China, Russia, or Iran. Eventually, if the U.S. debt pile continues to grow, bond vigilantes will demand higher Treasury yields. Valuations are high despite even considering the double-digit earnings growth corporate America is generating. These are tough tests that may cause more volatility near-term, but markets and the economy have stellar long-term track records. Expect this bull market to continue to bring home excellent report cards.
As always, please reach out to your team at Moneco with questions.
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Important Information
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
All data is provided as of September 4, 2024.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All index data from FactSet.
The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Past performance does not guarantee future results.
Asset allocation does not ensure a profit or protect against a loss.
RES-0001818-0824W | For Public Use | Tracking #623817 (Exp. 09/2025)
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Important Information
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
Moneco Advisors, LLC and LPL Financial are not affiliated with any other referenced entity.
This commentary reflects the personal opinions, viewpoints and analyses of the Moneco Advisors employees providing such comments, and should not be regarded as a description of advisory services by Moneco Advisors or performance returns of any Moneco Advisors client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Moneco Advisors manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.