1.

The Futures markets are anticipating a fed funds rate of 2.75 to 3.00% by year end. This is fiction. Rates will never get to half that before markets and the dollar collapse. Look what occurred in markets this year with only a 25bp increase. I bet the Fed steps in and stops increasing rates while going into QE mode later this year. Unless of course the Fed needs a market correction…

2.

Historically, it has been very difficult for US corporate profits to grow when the dollar has been strong. And, the dollar has been strong for about 12 months. Q1 of 2022 GDP was down 1.4% after a 6.9% increase in Q4 of 2021. That is one hell of a reversal!

3.

Passive investing, like index or sector funds, has been the biggest market driver for the last two decades. This frightens me. Indexing doesn’t buy companies based on merit, they buy based on affiliation. Moving forward, is this the wisest method to invest?

4.

As a reminder, since the early 1980’s, each rate cycle ended below the peak of the prior one. In Q4 2018, the Fed stopped when the fed funds rate got to 2.25%-2.5%. So, the rather quick pace and much higher rate projections will face major market head winds as noted prior…

5.

We could be seeing annuity rates peaking soon. The Fed knows the housing market will implode if rates don’t plateau shortly. So current annuity rates should be sold and used to moved risky assets out of the market. For the record, the ultimate victim from forced lower rates will be the US dollar. That’s from a long-term prospective…

6.

We are still seeing a ton of action moving funds from VAs into MYGA contracts. It seems like many clients never used the income riders and are done with paying 4% fees on their nest eggs. Let NestEgg help you with your transfers and exchanges. We can help supervise the process. Contact NestEgg today…