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The FI Mastery Podcast
14 minutes | Aug 1, 2022
Another Recession is Here. Now What?
Earlier this year, we wrote about the potential for two recessions in two years. Now, it's unofficially official: we're in an economic recession for the second time in two years. At least, that's according to government data published this week. And this news comes from the Bureau of Economic Analysis' latest report last week, which showed that U.S. Gross Domestic Product, or GDP growth, contracted during April, May, and June, marking the second straight quarterly decline so far this year. While there's no consensus on what constitutes the definition of a recession, last week's data print is consistent with an economic downturn. Indeed, history has shown that ten out of the past eleven two-quarter GDP contractions have been associated with a recession. So, from a historical perspective, there's a good chance that the first half slowdown could be a precursor to a recession in 2022. Be sure to read our latest report, where we discuss: · What it means to be in a recession · Whether we're in a recession now · How a recession might affect your · How to prepare for a recession · What a recession means for your investments Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
13 minutes | Jun 30, 2022
Three Things You Can Do About Inflation
Inflation is on a lot of people’s minds right now. And for good reason. While we tend to hear about inflation in terms of percent changes in government reports, chances are, you’ve likely experienced its real effects in everything from higher prices at the grocery store, gas pump, restaurants, and utility bills. Prices change all the time, so why should you care about inflation right now? Well, what you need to know is that, when inflation stays high for a long time, it can potentially erode your ability to secure your future financial independence goals if you do nothing to prepare for it today. In this episode we discuss: Why inflation is like a car traveling down a highway How a dollar today isn’t like a dollar two decades ago What’s causing inflation to speed up this year How responsible the government is for rising prices Three things you can do about inflation Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
15 minutes | May 31, 2022
Is Now the Right Time to Get into the Markets?
With risk assets having pushed into bear market territory in May, some investors are asking whether now is the right time to get into the markets. On one side of this debate is a group of investors who look at the recent pullback as an opportunity to buy securities at a discount. On the other side is a set of investors concerned that prices will only move lower from here. Make no mistake, this question is relevant to investors today not only because of the magnitude but also because of the breadth of recent market declines. For example, if we consider year-to-date performance for the S&P 500 index, what we find is that the first one hundred days of this year's market performance have been brutal. Indeed, through the end of May, the data show that U.S. Large Cap stocks have had their worst year-to-date decline in the past forty years. Adding insult to injury, investors have had little place to hide given the fact that stocks and bonds across U.S. and international asset classes have all posted losses this year. Why are markets selling off across the board? Well, the reasons behind this seemingly correlated selloff across major asset classes are manifold. But at its core, persistently high inflation and the prospects for an impending U.S. recession given ongoing logistics issues, rising prices, healthcare concerns, and the war in Eastern Europe have made market participants more sensitive to the effects of less favorable central bank policy and the weaker corporate earnings outlook. So, is now the right time to get into the markets? Well, in our latest podcast, we discuss why the question of whether to get into (or out of the markets) is a misnomer when it comes to the success of a long-term investor. Indeed, we illustrate how trying to time entry (or exit) points and missing even ten of the best days in the markets could be a setback for growing or preserving your investment portfolio for the long term. What's the solution? Well, rather than asking whether the timing is right, we lay out a framework for developing and maintaining a disciplined investment process to weather market uncertainties. Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
14 minutes | Apr 29, 2022
Are Your Financial Goals Meaningless?
Most driven individuals on their path to financial independence mastery know that you need goals to get to the next stage in life. And when it comes to money, many individuals have plans to increase their earnings ability, improve their lifestyle or save for long-term financial security. Nevertheless, even the most ambitious individuals quite often find that their goals fail within weeks or months into their endeavor. Why? Because they set meaningless goals. So, what is a goal? A goal is a future or the desired result that you envision, plan for and commit to achieving. Many well-intentioned individuals set specific, measurable, actionable, realistic, and timebound (or SMART) goals. And goal-setting can be as simple as striving to wake up at 4 am each morning to exercise for 15 minutes so you can lose five pounds in a month or as ambitious as starting a business from the ground up. When viewed in isolation, a well-defined financial goal may appear virtuous or valid on its surface. But, when it's out of context with what's essential to you, your goal likely will become meaningless and fail because it's not aligned with what matters most in your life. Certainly, determination to achieve an objective may initially propel you towards your aim, but soon enough, willpower fatigue likely will set in, and you'll probably end up reverting to old financial habits. Alternatively, you could push toward your financial goals on willpower alone, mistaking effort and progress as measures of success as you propel forward only to find that the object of your intention is hollow or unappealing once you've attained it. Goals in and of themselves are meaningless. They're simply a means to an end. What gives a goal meaning is its transformative power to shape and change who you are so that you can have the resources you need to experience a life worth living. Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
14 minutes | Mar 31, 2022
Is It Possible: Two Recessions in Two Years
Two recessions in two years. Is it possible? Well, calls for a U.S. recession have been on the rise recently following the Fed's decision to raise rates at its March FOMC meeting. To be sure, given several factors already in play, it's possible that we could see an economic slowdown later this year or even early next year. While some market watchers have suggested that policymakers could simply stop raising rates if a downturn emerges, the reality is that the Fed's credibility and its playbook are considerably changed from where it was two years ago. Make no mistake, at this moment, the U.S. economy is doing well. And recent data suggest that growth has been on a solid footing since the COVID-related lockdowns eased last year. Nevertheless, various developments related to monetary policy uncertainty and rising geopolitical tensions suggest that the road to U.S. economic growth likely will face some headwinds in the year ahead. Indeed, the bond market, typically a canary in the coal mine when it comes to the health of the economy, is now indicative of heightened financial and economic stress as escalating war tensions and rising interest rates have led to yield curve flattening. And too much flattening could be an early indicator of an impending recession. This outlook has led some investors to ask whether there is anything they should be doing now to avoid downside risks related to a market or economic downturn. The truth is that many investors have been caught flat-footed by trying to time the markets during similar periods of uncertainty. And that's why during times like these, it’s essential for driven individuals on their path to financial independence mastery to focus on an approach that has worked time and time again: consistently executing on a well-defined financial plan. Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
14 minutes | Feb 28, 2022
Worried About Ukraine, Inflation and Your Money? Consider these Six Steps.
Words seem to fail when attempting to describe the horrors of war currently faced by the people of Ukraine. Since last Thursday, millions of innocent Ukrainians have been displaced and hundreds killed following Russia's invasion of an Eastern European democracy. Indeed, world leaders have since responded by providing Ukraine with financial and military support while imposing heavy economic and financial sanctions on Russian President Vladimir Putin and his cronies. Today, much of the world looks on with bated breath, hoping for a quick and triumphant victory for the Ukrainian people. How and when this war ends remains largely unknown. It could end tomorrow or persist for weeks to come. Indeed, we're hopeful that delegates from Ukraine and Russia can find a way to end this war diplomatically. Even so, as we pointed out in last week's note, a seismic shift in the geopolitical status quo could lead to economic spillover effects that likely will impact US households for months or even years to come. So, this leaves many asking, what do these developments mean for my finances, and is there anything I should do right now to protect my wealth? Well, here are six points you may want to consider when it comes to guarding your money during periods of uncertainty: #1 Expedite big-ticket purchases#2 Revisit your lifestyle spending and savings plan#3 Top up your emergency savings fund#4 Adjust your expectations for employer bonus or equity awards#5 Avoid timing the markets #6 Rebalance international risk exposure Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
16 minutes | Jan 30, 2022
Don't Call it a Crash (Yet)
The S&P 500 index fell nearly four percent intraday on Monday, January 24, making for one of its most volatile trading sessions since September 2020. Heading into this period of instability, investors had good reason to believe that the markets were heading for a collapse. Rising inflation, concerns about the Omicron variant, the potential for war with Russia, and a Fed poised to aggressively raise interest rates amidst a clouded U.S. and global economic outlook had seemingly overshadowed any positive catalysts for an upward market move. With so much uncertainty on the rise, and policymakers poised to drain liquidity from the financial markets, a key question for many investors is whether we are on the precipice of a prolonged market selloff. Certainly, some market watchers and prognosticators are making the rounds on financial media and arguing that this week's volatility is setting the stage for lower equity prices ahead. Anecdotes aside, historical data indeed suggests that a period of market weakness in risk assets is likely on the horizon after this week's moves. That said, however, there's still a case to be made for avoiding panic and remaining committed to a long-term investment strategy amidst solid economic and corporate fundamentals. Indeed, it's during these times of increased market uncertainty that financial independence masters like yourself preserve their wealth by adhering to their disciplined asset accumulation and retirement distribution strategies. Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
13 minutes | Dec 31, 2021
Crush Your Financial Resolutions by Becoming Rather than Doing
Who doesn’t like a fresh start? The beauty of New Year’s Resolutions is that we all have an opportunity to fully commit to losing weight, getting organized, or finally saving more money at the turn of the calendar year. Whether you want to admit it or not, however, the chances are that the work you’re about to put into one or more of your financial resolutions this year likely will soon end in frustration and disappointment. So, what can you do to ensure that your financial resolutions stay on the right track heading into the New Year? Well, one way is to focus your goals on “becoming” rather than “doing.” Whether you’re earning six figures and broke, or simply trying to take control of your finances, doing the work of learning a new financial management technique, determining your “retirement number” or achieving some material outcome may not be the approach you need. What might better suit your situation and help you stay committed to and crush your New Year’s resolution is reframing your relationship with money, rewriting your money scripts, and becoming the master of your financial independence journey. Our latest blog post discusses how you can shift from Doing Mode to Being Mode to achieve your financial resolutions and deal with resistance along the way. Read more at: https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
13 minutes | Nov 30, 2021
How Policy Concerns Contributed to the Black Friday Selloff
While we strive to focus on long-term market trends related to achieving financial independence success, we believe that the Black Friday selloff is a canary in the coal mine as we look ahead to the coming year. Certainly, low volumes and technicals contributed to the sharp market decline. Still, the broader narrative underlying market sentiment is concern about government policy response to a seemingly never-ending healthcare threat. In many ways, the Covid outbreak is shifting from pandemic to endemic in nature. In other words, Covid is likely here to stay for an indefinite future. That’s why a key risk to market sentiment today isn’t another outbreak per se but rather near-sighted government policies that enact near-term economic pain while failing to acknowledge the long-term nature of the healthcare crisis. In today’s podcast, we’ll discuss why this changing narrative is essential for economic growth in the coming year and what you can do to position your finances for long-term success as inflation and market uncertainty rise in the coming year. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
19 minutes | Sep 30, 2021
Don’t Make These Five Early Retirement Mistakes
Don’t Make These Five Early Retirement Mistakes Handing in a resignation letter and walking away from an unfulfilling career may be one of the most satisfying acts in an individual's life. By some measures, there are an increasing number of satisfied people in the world today. Indeed, recent accounts increasingly show that people are leaving their jobs in droves. These developments are evident in articles about quit and vacancy rates and even rising Google Search trends for early retirement. To be sure, one study found that COVID has prompted a growing wave of early retirements, especially for people who had not planned to quit their jobs but are now thinking of doing so. Can you relate? Maybe your investments have performed solidly over the past 18 months, and now you have the financial resources and confidence you need to pull the trigger and finally step into financial independence. Maybe your company has recently gone public, and you've come into a large financial windfall that has set you up for early retirement. Or, perhaps you've had time to consider whether the work you're doing today truly aligns with what matters most to you in your life. Whatever the case may be, now could finally be the time for you to take the next steps towards early retirement. But before you walk into your boss's office and hand in that resignation letter, you'll likely want to consider some potential pitfalls that might derail your financial independence early retirement plans. Indeed, not thinking through some crucial early retirement mistakes could leave your financial goals falling short. Here are five financial mistakes that you'll likely want to avoid as you take your next step towards becoming the master of your financial independence journey: Mistake #1: Underestimating your retirement cash flow needs Mistake #2: Relying solely on your 401k or IRA for early retirement Mistake #3: Dismissing social security benefits entirely Mistake #4: Forgetting to factor in healthcare expenses Mistake #5: Not giving your money a purpose For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
16 minutes | Aug 31, 2021
Four Ways to Set Your Retirement on FIRE
Retiring early is an aspiration that many individuals can get excited about. Vicki Robin and Joe Dominguez, in their best-selling book, “Your Money or Your Life”, arguably introduced the concept of early retirement to the mainstream culture decades ago. Today, thousands of individuals are actively pursuing their goal of becoming financially independent and quitting their nine-to-five grind. According to one Gallup study, individuals in their early 20’s were generally optimistic about their ability to save for retirement before age 60. Those same individuals, however, curbed their early retirement enthusiasm when later surveyed later in their 30’s as savings and other lifestyle realities made it increasingly clear that early retirement might just be an elusive goal. Even so, data from Hearts & Wallets suggests that one out of every six Americans surveyed by the group expects to retire before the age of 55 - ten years sooner than the standard retirement age of 65. This data illustrates one key point when it comes to the concept of retirement: individuals across all walks of life increasingly want to start the journey to become financially independent and retire early, rather than walking down the path of a traditional retirement later on in life. To be sure, retiring early has become so popular that it’s even earned its own name: the FIRE movement. In this podcast, we discuss four ways to supercharge your retirement plans by participating in the FIRE movement. We’ll also discuss some factors to consider when calculating financial independence number. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
14 minutes | Jul 31, 2021
Mid-Year Outlook: Not Out of the Woods Yet
Investors have had good reason to celebrate this year, but is it truly time to let our guards down? Thanks to practical policy guidance, more than half of the US population has received at least one COVID-19 vaccine in 2021. Add to this the boost from a $1.9 trillion fiscal stimulus package introduced in March, and the US economy today is on pace for its most robust recovery in nearly 40 years. So, how have the financial markets taken these improvements? Well, risk assets have responded to the positive health and economic developments by posting solid gains in the first and second quarters. Looking ahead, however, the market and economic outlook appear less promising. A resurgent COVID variant, accelerating inflation, and a notable lack of bipartisan support for additional fiscal stimulus pose challenges to economic and market momentum in the second half of the year. In this podcast, we discuss why we may not be out of the woods yet when it comes to the market and economic outlook. We’ll also discuss some steps you can take to ensure that your financial independence plans stay on the right track. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
20 minutes | Jun 30, 2021
A Disciplined Investment Process to Master Your Financial Independence Journey
Many driven individuals are keen to identifying seemingly attractive investment opportunities to grow their savings in their pursuit of financial independence. More often than not, however, what they miss is an essential component to long-term financial success: a process to manage their investments that helps mitigate downside risks. Indeed, various studies have shown that the key to success in life and money centers on the process used to produce results. Today, we'll talk about the investment process we use at Franklin Madison Advisors to help our clients become masters of their financial independence journey. Today's show is a little unique because it features my interview with Chuck Jaffee on his podcast, the Money Life Show. In this episode, Chuck and I spend time talking about investment implementation within the context of a financial independence journey. We also talk about opportunities and risks given the current market environment. My Money Life Show interview with Chuck Jaffee was published on June 1, 2021. You can listen to this episode in its entirety by visiting: https://moneylifeshow.com You can also follow Chuck on Twitter and Instagram at @ChuckJaffee and Facebook at @MoneyLifeShow For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
9 minutes | May 31, 2021
Does Crypto Belong in Your Retirement Portfolio?
Life changing money. That's what happened to John Ratcliff. In 2013 the software developer from Colorado purchased 150 Bitcoin. Today, his $15,000 bet is worth millions as the price of cryptocurrencies (crypto) skyrocketed. Another individual who also came into life-changing money this year is Vitalik Buterin. The 27-year-old college dropout and co-founder of Ethereum is now the world's youngest crypto billionaire as Ether went from $130 in 2020 to over $4,000 in 2021. Stories like Ratcliff's and Buterin's have led to a crush of demand for the popular new asset class. To be sure, rapid price appreciation in crypto over the past year has prompted heightened media attention and arguably is fueling frenzied behavior among some market participants in tokens like Bitcoin, Ethereum, and even Dogecoin for fear of missing out. But what exactly are cryptocurrencies? And more importantly, do they belong in a retirement portfolio? That’s what we’ll talk about in today’s podcast. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
8 minutes | Apr 28, 2021
Biden’s Infrastructure Plan: Will a Deal Get Done?
In a speech delivered just outside of Pittsburgh in late March, President Biden introduced the American Jobs Plan. This sweeping initiative would spend over $2 trillion to prevent infrastructure disasters like the one in New Orleans and provide a renewed foundation for businesses and individuals to compete globally in the twenty-first-century marketplace. To be sure, President Biden's proposal is more ambitious than we've seen in generations. His package includes spending on preventable infrastructure failures while funding traditional bridge and road repairs. Simultaneously, the plan makes provisions for investments in quality-of-life essentials like clean water, quality education, and telecommunications improvements while funding caregiving assistance for an aging population and creating globally competitive U.S. manufacturing jobs. Following decades of false starts, it appears that the U.S. is finally on the cusp of beginning its most ambitious infrastructure program in years. But will a deal get done? For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
12 minutes | Mar 31, 2021
From Six Figures and Broke to Financial Independence Master
Dave and Beth are a high-earning household stuck in the perpetual cycle of rising income and ever-increasing spending. While their situation ultimately led them to bankruptcy, their story is an extreme example of how getting stuck on the hedonic treadmill and pursuing other people's money scripts can leave you emotionally empty and financially broke. In today's podcast, we'll talk about some of the factors that led to Dave and Beth's financial situation, how it wasn't always like this for the couple and how becoming the master of your financial independence journey might prevent a similar for you or someone you know in a similar spot. Whether you're earning six figures and broke like Dave and Beth, or simply trying to take control of your finances, learning a new financial management technique, determining your "retirement number" or some material outcome may not be the approach you need. What might suit your situation better is reframing your relationship with money, rewriting your money scripts, and mastering your financial independence journey. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
12 minutes | Feb 27, 2021
The Fallacy of Not Investing at Market Highs
Some investors today are worried. They're asking, "is now the right time to get into the markets?" Their primary concern is putting money to work at the top of the market, only to see their precious savings decline in a selloff. And they have good reason to be concerned. Volatility in certain parts of the financial markets remains elevated while asset prices continue to drive higher and, by many measures, are disconnected from fundamentals. So, what should an investor do to avoid losses associated with investing at the wrong time in such an environment? Maybe you're sitting on cash and asking whether you should put your money to work now or wait until conditions settle down a bit? Truth be told, not investing at market highs is a fallacy because there is generally no wrong time to invest in the markets. More specifically, the right time to be putting money to work in the markets is when your investment strategy balances your income needs with capital appreciation and other savings goals. In fact, staying out of the markets at an inopportune time might cost you in terms of growth over the long-term for the benefit of avoiding a loss in the short-term. To be sure, the key to navigating financial markets during periods of uncertainty is to avoid market timing altogether. When it comes down to it, investing isn't so much about divining market direction. It is about adhering to a strategy that enables you to achieve and maintain financial independence regardless of where you are in the market cycle. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
12 minutes | Jan 27, 2021
How to Stay Sane when the Markets are Going Crazy
Some people are getting rich in the markets today, so why aren’t you? As an investor, fear of missing out is a difficult emotion to manage, especially when others are seemingly making easy money and you’re not. In our latest podcast, we discuss: Why, when it comes to investing, few, if any individuals, enjoy going against the crowd for the sake of discipline, especially when their neighbors might be making money hand over fist in tech, bitcoin, penny stocks, and options trading. How by many measures, there’s little doubt that conditions in certain parts of the market today are frothy and consistent with a late market cycle. This sort of market euphoria has happened before, and if history is any guide, it likely won’t end well. But by looking past the latest investing craze, reminding yourself of your financial independence goals, digging deep to figure out what you have to lose, and staying committed to a long-term, disciplined investment strategy, you might just be able to maintain your sanity when it seems like the markets are going crazy. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
12 minutes | Dec 31, 2020
There’s a Case to be Made for Thriving Financially in 2021
This past year has been a period in history that many of us would like to simply forget. Concerns about our communities' wellbeing led to a seismic shift in the way that we work, educate our children, socialize, and go about our daily routines. Without a doubt, 2020 has been a year that has tried our livelihoods, finances, health, relationships, and most importantly, our patience. Indeed, the one word that might best characterize an experience that happened to us is: survival. Nevertheless, chances are good that the negative factors that have forced us to hunker down are likely to ease into the year ahead, enabling many of us to thrive once again. More specifically, widescale distribution of a coronavirus vaccine and a return to a seemingly normal political environment likely will foster greater business and household confidence in the months ahead. Such outcomes could support labor market improvements and a rise in business earnings. At the same time, accommodative central bank policy may provide much-needed support to the economy and boost financial market sentiment. Even so, while government spending and money printing were a boon to financial markets in 2020, investing likely won't be as simple as following the latest trading fad. Liquidity-induced momentum trades that provided handsome gains this year could be harder to come by in 2021. That's why as we look into the year ahead, the key to thriving financially for investors with a long-term savings orientation could be as simple as sticking to the basics and focusing on fundamentals. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
10 minutes | Nov 21, 2020
Are Vaccine Hopes a Shot in the Arm for the Markets?
Financial markets have posted notable gains month to date. And market optimism concerning the US elections has been amplified this week by hopes for a COVID vaccine. A key question for investors now is whether news of a vaccine will be enough to push risk assets higher through year-end, even as accelerating COVID infection rates threaten an already fragile economic recovery. Without a doubt, the news of a means to quell the spread of this year's deadly virus is a positive development for our healthcare system, our economy, and the markets. However, of particular concern remains production and distribution obstacles related to getting the vaccine out to those who need it most. These enduring questions mean that the healthcare crisis is likely to intensify before it gets better. Even so, we believe that the recent vaccine news combined with prospects of a concerted national response to the pandemic and potentially trillions of dollars in additional fiscal spending signals that light is beginning to shine at the end of the tunnel. If hope holds out, and the economy largely remains open, then the current market rotation into cyclical sectors could continue ahead of an economic recovery next year. For more information, read our latest report at https://fimastery.com Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/ Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
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