Jan 08
22
Emergency Federal Funds Rate Cut
In a surprise move this morning – the Fed cut the Federal Funds rate by .75%, lowering it to 3.5%. They held a special meeting last night in light of US Stock futures trading significantly lower. Let’s face it, we are in a global economy and the rest of the world if really fearing a US recession.
This is the first time the Feds have met outside their normal scheduled meeting since September 17th 2001 and we all know why that happened, God Bless America. This has also been the deepest one day cut since 1984!
What does all this mean? Well, as many of you know, I am not in the business of giving general advice but I can share this with you. If you share concerns about an impending recession, you had better make sure your investments are allocated properly for a bear market. Second, mortgage rates are at a level we haven’t seen since June of 2005 and those were 40 year lows! It may be a great time to analyze your liabilities and make sure they are working for you in the most efficient manner. Lastly, and maybe most important, you are going to want to make sure that you maintain a liquid cash position. If you follow the very wealthy, you know they always buy when things aren’t looking so good and everyone is selling.
I highly encourage you to get with your money professionals, Financial Planner, CPA and I am a little bias toward this but your Mortgage Planner as well. After all, next to taxes, interest charges are very expensive if not planned for properly.
If you would like to know how the recent markets health is affecting your financial health, give me a call or send me an email and let’s get that check-up!
Best,
Michael Eiden
P.S. If you have found this post to be valuable, pass it on to a friend would ya? After all, that’s what friends are for right! Take care, talk with you soon.
