Retirement Plan Update, Q3 2023

Market Recap:

Stock and bond markets mirrored the uncertainty in the economy during the third quarter.  Inflation slowed down over the summer, and sentiment was strong as stocks pushed higher in hopes of gains from Artificial Intelligence technology.  The mood soured a bit through August and September as signs of weakness in the economy persisted, though other areas remained strong.  Labor is one area that many economists expected to weaken for inflation to fall further, but the unemployment rate remains very low.  As the summer concluded, the chance of further interest rate hikes impacted both stocks and bonds, leaving both asset classes lower for the quarter. 

 Investors continue to hope that the economy slows down just enough to squash inflation without slowing into recession territory.  As we enter the last quarter, many questions remain about how strong the economy and the consumer are.  The good news is that many bonds are now priced at a value with improved yields, and the Fed is likely done with interest rate hikes.  If stock volatility continues, bonds are much better positioned now to help provide income and portfolio stability.

 Safe Computing

Beware of scams – particularly when a fraudster impersonates a trusted person to you, like your financial advisor or custodian.  These fraudsters will contact you via phone, email, text, or on social media.  They will claim to be the security/technical support for some well-known company.  They may ask you to download software or request remote access to your computer.  Or they may send you an email or text message asking you to approve or deny a transaction, set up new credentials, or take some other action regarding an account you have. 

Here are some steps to keep you safe.  Confirm the person trying to reach you is really who they say they are.  Check the sender's email address.  Well-known companies won’t use Gmail or other consumer email applications.  Likewise, check website URLs and validate – e.g. schwab.com versus schwab.co.  Generally, don’t click on any links or attachments.  If you receive a questionable message from your custodian, please reach out directly to them to verify the validity of the message.