The fed is cookin' up something and today we talk about their upcoming decision on interest rates, and debate on whether and how much rates should be cut. We discuss the impact of potential rate cuts - there’s concern about inadvertently stoking inflation or failing to manage a gradual economic slowdown. We also talk about market expectations, past misjudgments, and behavioral biases and how they effect investment strategies. Today we discuss...
- How inflation has decreased to 2.2% year over year, which is positive but may not feel beneficial to everyone.
- The Fed is expected to lower interest rates, with debate over whether it will be by 0.25% or 0.5%.
- Unemployment has risen to 4.3%, leading to concerns about a potential recession.
- Whether the Fed's actions are aimed at inflation control or market performance.
- The concept of second-level thinking in investing and the importance of understanding market expectations.
- How the Fed may lower rates once this year and not make multiple cuts unless there is a severe recession.
- Historical comparisons between past and current interest rates and unemployment rates.
- The importance of understanding market pricing, timing, and investor behavior.
- The role of behavioral finance biases, such as recency bias, in economic decision-making.
- Strategies for passive investing, portfolio rebalancing, and navigating the bond market in a changing interest rate environment.
"Cash is not trash... Cash is King" - Kirk Chisholm
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Today's Guest: Kirk Chisholm
Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group, an independent Registered Investment Advisor located in Lexington, MA. He has been providing wealth management services to individuals, executives, entrepreneurs, and their families since 1999. He is an outside the box thinker, risk manager, inflation expert, blogger, podcaster, and all-around interesting guy. Kirk is dedicated to developing lasting relationships with all of his clients and their families. One of the benefits of working with Kirk is his patience, empathy, and his ability to provide clear and easy-to-understand explanations to complex financial topics.
Kirk developed a unique philosophy for the wealth management industry called Risk Management First. The medical field has a similar way of thinking of “first do no harm”. This philosophy focuses on risk management for clients in all aspects of their lives in ways the industry does not address. Risk management does not stop with investments. It also requires working closely with other professionals to address areas of their financial lives not currently being met.
In 2008, Kirk co-founded Innovative Advisory Group to address the needs not being addressed by the wealth management industry. It started with specializing in alternative assets held in retirement accounts (i.e. self directed IRAs/401ks). Then the company expanded into the specialization of college funding (i.e. planning, strategy, and paying the least possible for a high quality education), Risk Management First, exit planning for business owners, advanced planning (estate, tax, etc), and providing practice management and leadership training to other financial advisors, accountants and attorneys.
Kirk's Online Presence:
Today's Panelists
- Kirk Chisholm | Innovative Wealth
- Barbara Friedberg | Barbara Friedberg Personal Finance
- Phil Weiss | Apprise Wealth Management