Weekly Financial Trends and Insights
Every week in our Key Wealth Institute emails, we dive into trending topics and their potential impacts to investors to deliver timely insights and advice from our in-house experts. Here, you’ll find all of our Key Questions in one place, so you always have access to the latest market information.
In the immediate aftermath of the COVID-19 pandemic, options for higher-yielding securities were limited as interest rates hovered near historic lows. This environment would persist for several years, giving rise to the acronym TINA (There Is No Alternative). Yet, for investors seeking income, one option remained: dividend-paying stocks.
Picture this: You’re sitting on your couch on a Saturday evening, watching your favorite movie. The action pauses, and suddenly, an ad pops up—maybe it’s a sleek new car cruising down a winding road or a flashy tech gadget promising to make your life easier. You might sigh and reach for the remote, or perhaps you’re intrigued enough to keep watching. But have you ever wondered what’s really happening when these ads play?
As of this writing (mid-day on Wednesday, November 6), the election results are in, and the outcomes are largely known. Donald Trump will be returning to the White House, becoming only the second person in US history to be re-elected to non-consecutive presidential terms. His victory was a convincing one which is important for regardless of one’s political affiliation, most everyone should take some comfort knowing that a lengthy, protracted and disruptive transition period will seemingly be avoided. This partially explains today’s stock market rally.
With the US presidential election fast approaching, certain sectors may exhibit considerable volatility. Such may especially be true with the energy sector, begging the question: who wins and who loses under a new administration?
In the past few days, there has been a noticeable shift in the bond market that investors should pay attention to. Since July of 2022, the yield on short-term bonds has exceeded the yield on long-term bonds. This is known as “an inverted yield curve” and is not normal.
After raising interest rates by the largest amount (and at the fastest pace) over the past two years, The Federal Reserve (“The Fed”) is poised to cut interest rates when it meets later this week. There is little debate over that; it is all but guaranteed.