September has a bad reputation of being the worst month to invest, and last month was no different. In our most recent episode of the Wealthy Behavior podcast, Sammy Azzouz and Heritage Financial’s CIO, Bob Weisse, discuss what rattled the markets in September and a number of topics including:
Inflation & The Fed
After getting a late start the fed has been aggressively raising rates in an effort to combat record inflation. It’s possible they may continue fighting so hard that their actions may lead to an over-correction. Should you be worried? We discuss why we’d rather the fed overshoot than come up short.
Though we believe we are either in, or about to be in, a recession, the worst-case scenarios and declines like we experienced back in 2008 and March of 2020 aren’t likely this time around. We discuss why this time it IS different.
A Few Rays of Sunshine
- Inflation is elevated, but there are signs it is slowing
- Employment remains strong
- Consumers are healthy
- Housing market is slowing and home prices are declining
Bonds Are Back!
The bond market is on track for its worst year on record. Bond investors are feeling the pain, but grin and bear it because we see some bright light on the horizon.
What is Private Credit?
Not all income generating investments are suffering this year. Private credit is an asset class that has been a bright spot this year and tends to perform well during periods of rising interest rates. Bob explains what private credit is and the opportunity we see in this asset class.