Consumer spending remains strong amid elevated rates.
- US economic growth surged this summer at the fastest pace since 2021, as consumers spent at elevated rates that forecasters believe will be difficult to sustain as high rates and global risks weight on the economy. GDP expanded 4.9% in the third quarter which was more than double the second quarter pace.– WSJ
- Increased yields on longer duration treasury bonds have forced US companies to delay borrowing plans, making this the slowest October for debt issuance in more than a decade. Bankers say the sharp rise in Treasury yields in the past month, which has fed through to higher corporate borrowing costs, has put off companies from tapping debt markets unless they must.– Financial Times
- The Fed has since the beginning of 2023 steadily increased its estimate of the long-run fed funds rate. The implication for investors is that the Fed is beginning to see the costs of capital as permanently higher. A permanent increase in the risk-free rate has important implications for firms, households, and asset allocation across equities and fixed income.– Apollo
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.
Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified. This content is not intended to be tax, legal, investment or fiduciary advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. Past performance does not guarantee future results.