The job report’s effect on the size of the rate cut, how startups are effecting the economy, a look at three decades of returns, and more.
Each week, the Stokes Family Office staff puts together a list of our favorite news and updates on all things wealth management. From financial planning, portfolio construction, tax and estate planning, retirement plan services to anything we found interesting. Enjoy this week’s curated list for your weekend reading!
ECONOMY NEWS
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- Sam Ro says that while excess demand was a key force driving up inflation, it also explained why the economy was at low risk of falling into recession in recent years.
- As the labor market has cooled, this once massive tailwind has dissipated.
- Latest Jobs Report Will Likely Determine the Size of the Fed’s Rate Cut
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- CNN: The US economy appears to be on a knife’s edge, and Friday’s jobs report will be the deciding factor as to the next direction.
- Friday’s jobs report should provide further reassurance that the labor market is merely softening and not collapsing, economists predict.
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- The average number of people employed by the youngest businesses fell sharply during the pandemic, accelerating a decades-long slide.
- The rise of these smaller ventures is one of the first signs of how pandemic-inspired businesses have reshaped the economy.
MARKETS NEWS
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- Over the last 10 to 20 years the largest companies have become larger and larger, outperforming small caps in the process.
- New research indicates that at least in part, this might not have been the result of mega caps being operationally superior to small caps but may be due to a butterfly effect triggered by index fund flows.
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- 10 year annual returns ranged from -1% to 17%. 15 years: a high of 14% and a low of 4%. 5 years: -2% to 29% annualized.
- From his charts, Ben Carlson deduces that regardless of what returns the stock market produces in the future, thinking and acting for the long-term remains the most sane strategy for investors.
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- The best three months of the year during an election year have been June, July, and August. The S&P 500 was up 7.0% in the summer months this year, right in line with the 7.3% average.
- But September has been the worst month of the year the past 10 years, 20 years, and since 1950. In election years, it is the third worst month.
Stokes Family Office is 100% Family Owned, and has been continually operating in the New Orleans Area for over 35 years. As a family office, we are focused on family wealth, financial planning, and tax planning. We are your local experts for Gulf South wealth management. Want to hear more from our team? Check out the Lagniappe Podcast.
