The Weekly Wealth of Knowledge is your download of this week's most important topics related to our community, financial planning, the markets and more! As we welcome in June at MONECO Advisors, our new theme for the month will be "safety". Our content all month long will focus on things you should be aware off and the steps you need to be taking to protect you, your families, your homes and your assets.
In this issue:
- Team MONECO - Welcome Summer Interns! (2 min read)
- MONECO Insights - Insurance & Risk Management (3 min read)
- Debt Ceiling Drama Is Behind Us (2 min read)
BONUS: Community Shredding Day & Fairfield Police Sunset 5k
If you enjoy our Weekly Wealth of Knowledge, don't forget to check out our content on Facebook, Linkedin, and Twitter!
-------------------------------------------------------------
Team MONECO - Welcome Summer Interns!
Each semester during the school year, as well as during the summer, MONECO Advisors offers a robust internship program for those individuals looking to not only learn more about financial planning & investment management, but also what happens behind the scenes in the day to day at a company from an operational standpoint. During the school year, a majority of our candidates of course are drawn from local colleges in and around Fairfield County. However, in the summer program, we are fortunate to have so many qualified candidates return home for break that attend universities around the country. This summer we are happy to introduce 3 candidates that will be contributing members of the MONECO Team. Ruthie Wilson is a rising junior at Tulane University with an undecided business major and minor in real estate and resides in Fairfield. Max Oeser is a rising junior at Lafayette College majoring in economics, with a dual minor and resides in Brookfield. Matt DeVito is a rising junior at Sacred Heart University majoring in finance, who resides in Monroe and will work out of our New Canaan office. They bring a strong work ethic with positive energy, and our entire MONECO team looks forward to working with them. When you are in the office, be sure to say hello!
-------------------------------------------------------------
MONECO Insights - Insurance & Risk Management
This week as we continue with the theme of "safety" month for June, the MONECO Insights team takes a look at leveraging insurance as a risk management tool to protect yourself against various risks. As always if you have any questions, we are here to help.
-------------------------------------------------------------
Debt Ceiling Drama Is Behind Us
Every so often Washington likes to remind us how hard it can be to get things accomplished. The most recent example is the debt ceiling—the amount Congress can borrow to pay its bills. It seems like we have this debate every few years and in the end a deal is made, which is just what happened this time. Considering equity markets never really reacted to the drama, perhaps this is a good reminder that focusing on long-term objectives is the best strategy, even amid a fair amount of market noise.
With the debt ceiling drama behind us, markets will likely return their attention to topics such as inflation, the health of the economy, and the Federal Reserve (Fed)—who is scheduled to meet June 14-15. Expectations are that they will not raise short-term interest rates for the first time in 10 meetings. The Fed has done a lot of heavy lifting already—raising short-term interest rates by 5% in just over a year. Since rate hikes tend to have a long and variable lag, the Fed wants to see how those rate hikes more fully flow through the economy before its next move.
The Fed’s goal has been to elevate the fed funds rate and make the cost of borrowing money prohibitively expensive, to slow aggregate demand. While this has exposed some cracks in the regional banking sector, it should allow inflationary pressures to abate. But then what? After winning its fight with inflation, the Fed is expected to start cutting rates early next year. Just as the aggressive rate-hiking cycle took Treasury yields higher, interest rate cuts will take Treasury (and other bond market) yields lower. Both lower inflation and an end to rate increases could be welcome news for core bonds, especially intermediate core bonds, which have tended to perform well after rate-hiking campaigns. Investors may be better served by locking in these higher yields before they’re gone.
Only time will tell, but it feels like we’re finally on a path to lower interest rates and the end of this inflationary cycle. Of course there will be other challenges to deal with, that’s just the dynamic nature of the market. But in the meantime, returning to the familiar—lower rates and the end of inflation—is something we can all rally around.
If you have any questions, do not hesiate to reach out to your advisor.
-------------------------------------------------------------
Community Shredding Day & Clothing Drive
Come one, come all! MONECO will be holding its annual Shredding Day on June 17th from 10:00am - 1:00pm at the 2150 Post Road office in Fairfield. The event will take place in the lower parking area, where you will be able to drive right through and if you choose, witness all of your personally identifiable information get shredded right before your very eyes. Clients, friends and members of the community are welcome to attend. We will also be partnering with a local non-profit called Save A Suit, to collect professional attire for veterans that are returning to the workforce. You won't want to miss this one! Register below and if you have any questions, do not hesitate to call the office.
-------------------------------------------------------------
Fairfield Police Sunset 5k - Presented by MONECO Advisors
The 5th Annual Fairfield Police Sunset 5K is Presented by MONECO Advisors and will be held again this year on July 19th at 6:30P.M. All proceeds will be donated to the Fairfield Police Union Scholarship Fund & the Fairfield Police Foundation. You can run (3.1 mile) or walk (1 mile) course. We were able to increase the number of participants to 1000 this year and do expect to sell out, so don't delay, sign up today for Fairfield's most memorable night of the summer! Sponsorship opportunities available via the registration link as well.
The opinions voiced in this material are for general information only and are not intended to provide specific financial or tax advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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.
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.
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 June 6, 2023.
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.
For a list of descriptions of the indexes and economic terms referenced, please visit our website at lplresearch.com/definitions.
MONECO Advisors, LLC and LPL Financial are not affiliated with any other referenced entity.