Missed our Quarterly Economic Update? No problem! Park City Wealth Advisors is pleased to provide the recording for folks who weren't able to make it live.
In this video, Morgan Lemaitre, Owner & Founder of Park City Wealth Advisors covers:
1. Recession Predictions vs. Reality:
- Despite widespread predictions, a recession did not materialize.
- Factors preventing it: high household deposits and robust consumer purchasing power.
2. Economic Update & Outlook:
- Strong GDP growth supported by a low unemployment rate.
- Services Purchasing Managers Index (PMI) and Manufacturing PMI indicators show expansionary signs for the economy.
3. Government Shutdown's Market Impact:
- Historically, markets tend to remain positive following government shutdowns.
4. Market Valuation & Equity Environment:
- S&P 500's forward price-to-earnings ratio slightly above the 25-year average, indicating not overvalued.
- Looking at the potential of small caps, which are currently trading at a discount.
5. Market Volatility:
- Expect increased market volatility, yet remain optimistic for positive returns.
- Timing the market is challenging; focus on consistent investment strategy.
6. Interest Rates & Inflation:
- Possibility of one more Federal Reserve rate increase in November.
- Inflation remains a concern, though core inflation is trending in the right direction.
7. Actionable Insights:
- Understand your investment portfolio: know what you own and its purpose.
- Utilize tax loss harvesting to mitigate tax implications during volatile times.
- Consider longer-duration bonds given the current attractive rates.
Our opinion is that the economic landscape seems resilient and promising. We encourage you to integrate this knowledge into your investment decisions and business considerations- we can continue deeper discussions on any topic during year end review meetings. We hope you benefit from our quarterly economic update!
If you'd like to set up a meeting, contact us today!