Author Archives: vlm

If you remember last month’s blog, I asked the question “has the bear market officially been cancelled?” One month later, I don’t think we know the answer yet. There is a lot of reasons to be bullish when we look at market technicals. The S&P 500 has notched seven weekly closes above its 40-week moving average, which is a positive sign. In addition, the market has cleared the 40-week daily week moving average downtrend line from January and December 2022, suggesting a potential bullish turn in the trend. Also noteworthy is that the during the most recent pullback, the S&P 500 also held the 200 day moving average. This was a very important line of support to hold and is now considered support instead of resistance. So, this must mean we are in the clear?

The fundamentals are still flashing “not so fast”. Over the next 12 months, the “bear market is over” thesis will depend much on the Federal Reserve, Government policies, and inflation.  Today I was listening to Jerome Powell speaking that we are likely to see the prime rate need to move higher than expected. Increasingly aggressive rate hikes will likely cause stock prices to falter. As the Federal Reserve continues to tighten financial policy, we will see economic growth wane. Moving forward, as they continue attempts to finally quell inflation, each additional rate hike could bring us closer to recession. A recession would mean slower growth and decreased profit margins for companies. This would directly affect stock valuations.

The technicals and fundamental backdrops are currently in stark contrast with one another. What does that mean for investors? I think it means we continue to tread with caution. This may mean participating in market performance without taking on excessive risk. Your portfolio construction should take into consideration how much risk you are willing to take on. What are your goals for your investment accounts? The longer your time horizon, the less concerned you may be about short term risk and more interested in long term performance. A prudent investment process can you help you determine what areas of the market you should consider investing in. A pre-determined set of investing rules can also help you act quickly when its time to fire a stock or fund that is no longer fulfilling its assigned function. Remember, your allocations should be working for you, not against you. If you have questions about your current investment allocations we are always happy to take a look with you. Its our pleasure to help. Have a wonderful March.

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

Has the bear market officially been cancelled? Or are we amid another bear market rally not unlike what we experienced multiple times last year? Markets have had a strong start to the year with the S &P 500 rising more than 6% for the month of January. Although it has left investors scratching their heads wondering “what changed since December?” Last week Jerome Powell helped to fuel stock buying mayhem when he commented that the “disinflationary process has started.” This is a crucial statement, as noted by Yahoo Finance last Thursday: “Unlike inflation (prices going up) or deflation (prices going down), both of which economists fear in large quantities, disinflation means prices rise at a slower pace. Headline CPI, for example, rose 6.5% over the prior year in December after having jumped as much as 9.1% over the prior year in July. This deceleration in the pace of price increases is disinflation. “ This COULD give the Federal Reserve the ammunition needed to be less aggressive increasing rates. However, I believe they will need to continue at least two more rate hikes, and we are likely far from them even considering cutting rates. It is important to note that inflation remains elevated prices compared with historical averages so while we are cautiously optimistic, there remains potential risks for equities.

Market technicals are giving some signals that we are at least in a temporary bull market. Last week markets completed the “inverse head and shoulders” formation that could signal the bottom is finally in. Also notably, the 50-day moving average is rapidly closing in on a cross above the declining 200 day moving average. Such is known as the ‘golden cross’ and historically reassures investors that a bull market is preparing to move forward. You will recall last year we discussed the opposite of the signal as being the death cross and typically is the signal for a bear market. While market technicals ARE reassuring, we do need to still deal with the pesky lingering fundamental issues. Earnings and earnings estimates have been deteriorating. Inflation is still running over 5%. We still cannot dismiss the possibility of a recession on the horizon. This should at least give investors pause.

Certainly, as investors, we want to participate in market upswings. It is just important to make sure you don’t violate any of your investment rules in the process. As a reminder, don’t be afraid to cut losers quick and conversely let your winners run. Make sure your allocations have specific roles and responsibilities in your portfolio. If they are not fulfilling them, they may need to be replaced. Make sure decisions are driven by your rules and not emotions. Remember investment discipline will only work if you are following it. It’s always a nice way to start the year with strong gains after a year like 2022. The key now will be to see if we can continue the trend. As always, if you have any questions about your current investment portfolio, please give us a call. We are always happy to help.

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

As we approach another holiday season, it is always a wonderful time to reflect on all we are grateful for. As a family-owned investment management firm that has been operating for over forty years, being able to serve our clients and their families has always been our greatest gift. When Victory Fiduciary Consulting was founded by Bud Verfaillie, he relied on three main principles, and they continue to guide the practice even today. “Always put your clients’ needs ahead of your own”, “treat every client like they are family”, and “find ways to give back to those who are in need”. These simple core values are the framework of our practice that guide our interactions and decisions with both our clients and our community. Deciding to operate as a fiduciary was an easy decision back in 2005 as it fit in perfectly with what we have always sought for our clients. We simply put in writing that we would act in the best interest of clients and put their needs ahead of their own. Our clients become family to us. In some cases, we are now working with third generation clients. It is special to work with grandparents, their children, and now even their grandchildren. Giving families peace of mind, especially during uncertain or turbulent times has always been important to Victory and it is wonderful to see that play out through different generations.

Giving back to those in need in our community has become an important part of our business. In the past, Bud has organized multiple hurricane relief trips to Florida and more recently was an instrumental part of the widespread tornado relief work in our very own town. For the past five years, Ashley and our staff have organized a coat drive for kids working with local school districts. Last winter we were proud to have placed our 250^th coat. As we reflect on this past year, we are overwhelmed with gratitude for so many blessings and we are looking forward to welcoming a new year with our clients and their families. Wishing you a wonderful holiday season and a prosperous new year from the entire team at Victory Fiduciary Consulting.

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

It was all treats no tricks for investors in October. Markets finally saw a healthy advance after struggling to find direction in September. Investors are wondering what this means for markets as we enter the typically strong season for stock market returns. As Bob Farrell once said “Bull markets are more fun than bear markets.”  However, while we can certainly hope that the October market lows marked the bottom, it is likely we will see more volatility before we finally see an all clear signal that markets are ready to resume new highs. As we move into 2023, the markets still have hurdles to get past. Long term valuations remain deviated, earnings are weakening, profit margins continue to be squeezed, and stock prices could still move lower. As inflation numbers continue to run hot, the Federal Reserve has shown no signs of slowing down their rate hike schedule. In fact, on November 2nd Jerome Powell’s commentary left investors nervous by his continued hawkish tone. While the .75% rate increase was expected and priced in, markets were looking for a sign that we are nearing the end of the hikes. Powell’s comment that it is still premature to even discuss rate hike pauses caused a late day 2.5% selloff. Moral of the story is that investors should remain cautious until the economy shows signs of improvement. Cautious does not mean “go to cash” but this is probably not the time to take on excessive risk and it is more important than ever to make sure you have an investment strategy and that you are following it.

You may be wondering how to invest in the case we do head into a recession. Many indicators suggest we could be heading into a recession next year, but unfortunately, we won’t know for sure until after the fact. It’s typically too late to make significant investment changes by that point. What we can do is heed the warnings we see and take any necessary pre-emptive actions as a result. That said, the most important thing isn’t necessarily what we should do but rather what should we avoid doing. During market downturns, allowing our emotions to guide decision making rarely ends in the way we hope. However, an investor may want to consider buying high quality companies that can be held. High quality companies with solid earnings are likely not going anywhere, even if they are undervalued in the short term. Equally important is to avoid selling quality companies just because their stock prices are down. Of course, it is not always easy to determine whether a company is truly a quality company with favorable fundamentals. This is why your investment strategy is vital.

I recently read The Motley Fool’s current take on how to invest during recessionary periods and I thought it was worth sharing. “The bottom line is that, during recessions, it’s important to stay the course. It becomes a bit more important to focus on top-quality companies in turbulent times, but, for the most part, you should approach investing in a recession in the same manner you would approach investing any other time. Buy high-quality companies or funds and hold on to them for as long as they stay that way.” Of course, this is often easier said then done. You must have a solid method for evaluating stocks ongoing as fundamentals can change. If your portfolio allocations are no longer performing their desired task, you may need to remove them. A solid investment strategy is important as it removes the emotions from the decision. A fiduciary investment advisor may be able to help you determine appropriate investment allocations while also considering your time horizon and individual goals. As always if you have any questions about your current portfolio or investment strategy, we are always happy to help. Be well and Happy Thanksgiving!

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

August certainly lived up to its reputation for being a volatile month for investors when Bears clearly regained control. After a large rally in July, many were left disappointed by the following month’s market performance. In last month’s article, we discussed there were some favorable signs the market was beginning to stabilize. However, one major potential hang up would be “if the Federal Reserve comes back needing to be more aggressive with rate hikes”. This played out on August 26th when Jerome Powell stated there was more “pain to come” speaking about ongoing inflation management and the need to continue to be aggressive with rates and monetary policy. Markets sold off steeply that day and have struggled to recover since. The S&P is currently down nearly 7% since that Powell’s address. So what now?

This time last month markets were significantly overbought, and we thought at least a pullback would occur to help burn off some of the excess in markets. Currently, the opposite is true. Markets are broadly oversold and so it would not be unexpected to see a bounce in the near term. What is not clear is if any reflexive rallies will be able to hold or if they will eventually give way to a lower low. We have currently fallen below our short-term support levels (50 Day Moving Average) once again with the market movements of the past two weeks. If we can reclaim the 50 Day, this could potentially allow markets to resume their moves higher once again. With markets being oversold, this is a possibility. But we also must acknowledge that there is still elevated risk within markets and we could still see movements lower from our current vantage.

What’s the takeaway for investors? If you are considering making major portfolio changes now, it could be advantageous to speak to a fiduciary investment advisor before making any adjustments. When emotions are the catalysts for changes, the results aren’t always what we had hoped for. Rather, we should be looking at our portfolio allocations as carrying out specific roles in our overall investment plan. Speak with a Fiduciary Advisor to make sure each allocation has been assigned a specific role and if they are no longer meeting their function then you may want to consider replacing them. Also, it is important to remember your time horizons for your accounts. Accounts with a longer time horizon can afford to take on more volatility. Conversely, if you know you are going to need a large portion of your account in the near term, you probably want to be invested more conservatively to limit volatility when possible. If you have specific questions about your accounts, we are happy to help anyway we can!

In a bit of good news, we did release our first “Summer School” video series in August. Our first videos feature local experts in the area of credit and debt repair, real estate, and mortgage and refinancing. Here is my most recent market update and you will find all the Summer School videos hosted in the same channel.

We will be releasing new informational videos this fall and winter so stay tuned! In the meantime, enjoy the rest of your September. See you next month!

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

Does your dental practice have an exit strategy?  Many do not. As a business consultant and financial advisor, I have learned many strategies to help business owners and their families navigate difficult decisions. One such decision is, “what am I going to do with my business?” “Should I keep it and pass it down to my heirs, or should I sell it?” This Keep/Sell scenario usually plays out before any planning is thought through and implemented. There never seems to be enough time; business owners are typically too busy running their day-to-day operations. In my experience, I have seen several business owners pass away or become totally disabled prior to any plan execution, leaving the family and employees scrambling to keep the business profitable. As the

American poet, Henry Wadsworth Longfellow, once said:
“Great is the art of the beginning, but greater is the art of the ending.”

I was recently in Nashville TN at a business conference where I was introduced to a gentleman and his process of helping General Dentists/Business Owners with the problem of practice value; that is: “how to increase their practice value.” I was intrigued by the process. He stated the possibility of growing the practice with the added dimension of creating an exit strategy for the dentist. I have experience in this area, as I had helped the majority shareholder of a Dermatology practice with a successful exit strategy; however, this process was unique.

The strategy and process of increasing dental practice/business wealth was developed by Matt Kennedy of Dental Impact. As both the COO of a multimillion-dollar dental practice and a published author on the subject, Matt has developed a process that is simple, transparent, and effective. Having spoken to several dentists in the tristate area, I know that they are often approached by both their dental association and independent financial advisors regarding numerous financial subjects. However, I urge all who are reading this to keep an open mind and set 15 minutes aside to hear about Matt’s value proposition. To a general dentist or business owner, that 15 minutes could put $5-7 million dollars back into one’s retirement.

His proven process begins with “The Efficiency Accelerator” in which he uses a “Profit Scorecard”. In other words, he analyzes the business’ Profit & Loss Statement (P&L) along with their Personal Balance Sheet to find money they may be losing. Typically, millions are recovered over one lifetime.

“The Capacity Builder” is another step within Matt’s process. Using the “8 Driver of Practice Value” as a guide and “The Dental Freedom Code” to measure progress, dentists and business owners can see and capture the untapped potential of their practice, enabling them to get out of the dental chair or office.
Instead of an Exit Strategy, they’ll have a practice/business Options Strategy. If the choice is made to sell, one can sell up to 10x the current value. They also have the option to keep the practice and enjoy the profits without all the work. Or, ultimately, the choice could be made to pass the business down as their legacy.

A dental practice or business will be one of the most valuable assets one owns. Matt’s approach demonstrates how to take the outflows and redirect them back into the business. This will create more wealth and security in one’s retirement.

*Claim your free copy of Matt’s book, “Designing Dental Wealth” by emailing jacobr@victoryfiducairy.com. Please provide your name, address, and phone number and a copy will be mailed to you.

JACOB Riloff, Chfc, Casl

Jacob is the Strategic Consultant at Victory Fiduciary Consulting. In that capacity, he specializes in business development issues for closely held businesses and their owners. He is an expert in business succession planning, exit strategies and advanced insurance planning techniques. Jacob focuses on providing business owners with sound planning to increase shareholder value in their privately held businesses. He has over twenty years of experience as a business-planning advisor.

Will the summer rally that started in July continue to pick up steam or will August cool off for investors? Markets were extremely bearish, extremely oversold, and were overdue for a counter rally after the steep selloffs experienced in May and June. We finally saw the expected rally in July where the S&P 500 rose over 8%. We also began to see a rotation from areas of value to areas of growth. Particularly to note, technology stocks have been making a large move off their bottom. Technically, we are currently trading two standard deviations above our moving averages. This means markets are currently overbought and will need to either have a slight pullback or at least trade sideways until some of the overbought conditions can be worked off. In other words, don’t be surprised if markets stagnate for a bit as markets do not typically move straight up. Currently the S&P 500 is finally trading above its 50-day moving average and this is now the current support line. If we can hold above this line, even during pullbacks this would be an encouraging sign that market strength is returning. Market breadth is also returning as currently 36% of funds in the NYSE are currently experiencing new highs versus new lows. That number was as low as 4% in June.

What does this mean in English? I believe the signs are reassuring that markets could continue their move higher. Potential hang ups for the market would be if inflation numbers continue to rise unchecked, or if the federal reserve comes back needing to be more aggressive with rate hikes. So far, earnings reports are showing weak earnings but “not as bad as expected” so markets are considering that a win. I would expect any unexpected weak economic data that has not been priced in could temporarily cool down the market response. We will be hearing more about July’s economic numbers in the coming days. I think any positive news could add to the current rally’s fire.

What should investors consider as we wait to see which way the market moves? Often, we can see major market rotations when we come out of a significant correction. What was working a few months ago may not continue to work once the dust has settled and new market leaders emerge. Don’t be afraid to cut out allocations that are no longer performing their role. Remember, every holding should have a defined purpose. When the market has truly bottomed, and we are on our way to a new bull cycle you want to be properly positioned to capture the current areas of strength and momentum. If you aren’t sure if you are properly allocated, this could be the right time to speak with a fiduciary financial adviser to make sure you are stacking the odds in your favor. No one knows what the market’s next move will be, we can only try to be properly prepared for what might come next.

As we enter in the last month of summer, we have been working hard taping and editing our first “Summer School” series. We have worked with leaders in the mortgage, real estate, debt management and estate planning fields to bring timely relevant content to our YouTube channel. It will be live in the coming weeks, and we hope you check it out. I also record monthly market update videos for our Youtube channel. You can watch our most current video below!

Until next month, enjoy these last weeks of summer. As always you can call me with any questions. We are happy to help.

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

As we enter the dog days of summer, the stock the market continues to cool off substantially. This is due in part to the looming risk of recession that seems to look more likely as we march on to the third quarter. In fact, it seems like it’s a constant barrage of bad news. Surging inflation, aggressive fed rate hikes, reduction of the Fed’s balance sheet, lack of government stimulus, rising inventories, weakening retail sales, declining real disposable income, high gas and food prices weighing on consumption. The list goes on. More economists are now predicting not “if a recession is imminent, but rather how hard the landing is going to be.” Investors are hoping for confirmation that recession risk has been fully priced in currently, but we could likely see more negative pressure in the near term as price/earnings ratios finally start to reconcile. I know that’s not what we necessarily want to hear but it’s important to be realistic when managing one’s expectations.

You may be wondering how to invest when preparing for a possible recession. I think it is important to keep in mind that sometimes volatility is a necessary part of the investment cycle. What tends to catch investors off guard is when what used to work stops working. This is where your investment management strategy becomes very important. If you do not have a formal plan, this is a great opportunity to consider hiring an investment fiduciary to look over your current portfolio and make sure your allocations are set up to work for you and not against you. You should consider what types of companies are in your line up. Do they have consistent earnings? Are they quality companies? Are they fundamentally sound? We are coming out of a time where it seems every company had its stock run up, regardless of price to earnings ratios but that is now changing. You should understand what role each of your portfolio allocations has been assigned and be prepared to replace them if they are no longer satisfying that role. Education is key when it comes to investing, especially when preparing for the potential of a down market or recession.

Speaking of education, I am so excited to announce our first ever “Summer School” educations series that will be launching on You tube in a few weeks. We have been collaborating with local expert professionals in our studio to deliver a series of topics that we believe will be pertinent and relevant to many of our clients and followers. Topics covered include but not limited to debt and credit management and repair, estate and long-term care planning, current mortgage landscape as well as special planning considerations during periods of rising mortgage rates, as well as an overview of the current real estate environment and how to create wealth despite headwinds. Be sure to follow us on Facebook and You tube so you know when a new session has been released. You are not going to want to miss this! Until next time, stay safe and have a wonderful July.

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

May marked another month of wild swings in the stock market. By mid-month many investors were sitting on 10% losses in their portfolios and we began to hear the term “bear market”. Investor sentiment was exceedingly negative. A strong six day rally in the final days of the month stopped the bleeding finally and the major indexes all closed close to where they started. It was another episode of Mr. Toad’s Wild Ride stock market edition.

Does this mean the sell-off is over or was this just an example of a “bear market rally”? It is probably too soon to tell. The good news is that the current rally movement has pushed markets back to their first line of support (the 20 day moving average) and we are now approaching the 50 day moving average. In other words, markets may have found a short-term bottom. Price momentum seems to be improving. Stocks have begun to set more 52 week highs than lows (a sign of improving markets).

That being said, we are still in a fairly defined downward trend since January which means there could still be additional bumps along the road. Inflation remains an issue. Gas prices remain high. Recent weak economic data points to additional fractures in the economy. Retail consumers sentiment remains extremely pessimistic. Credit card balances increased last month pointing to trouble for the average American consumer. The adage goes “so goes the consumer, so goes the economy”.

So what should investors do considering what we know? As I always say, if you have been extremely uncomfortable over the past few months you should consider if you have too much risk in your portfolio. Talk with a financial fiduciary to help you determine what your current risk tolerance is and what an appropriate asset allocation should look like. Its ok if you decide your risk tolerance has changed by the way. Your willingness to take on risk can and SHOULD change over time. The important thing is that your portfolio pivots to accommodate any changes. Make sure your portfolio allocations are all still achieving their desired purpose. If you do not have a formal investment strategy, consider talking to a qualified fiduciary who can help you formalize your investment process. It is never too late to make sure your portfolio is working as hard as possible for you! If you have any questions, we are always happy to help!

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

It’s May the Fourth Day and its yet time again for the Bank of the Empire (Federal Reserve) to meet this afternoon. Top on its list of discussions is the interest rate hike schedule for the rest of the year as they are widely expected to raise interest rates by half a percentage point — the largest rate hike in more than two decades. It seems like the federal reserve has certainly used its own Jedi mind tricks for the past year and half as it has tried to tamper surging inflation while also trying to be gentle to the fragile economy as we emerged from the pandemic. Investors have been understandably rattled as they weigh the implication of a rising interest rate environment versus unchecked inflation. The fed is expected to hike interest rates even higher to bring inflation back from levels we haven’t seen in decades. It’s a hugely consequential policy decision that will affect virtually everything in the economy. The stock market is already having its worst start to the year since 1939 with the S&P 500 being down over 13% as of the end of April. Hiking rates is only making investors more antsy.

The Federal Reserve will raise interest rates by raising the federal funds rate. This is the average interest rate that banks pay each other for overnight loans. By raising the cost of borrowing between banks, the increased costs associated are passed along to consumers and seen in interest rates increasing. Investors are feeling much like when Luke Skywalker said to Obi-Wan- “I got a bad feeling about this”. A rising interest rate environment can negatively affect a company’s bottom line earnings, which can quickly lead to decline in valuation. Bonds are particularly sensitive to interest rate changes. When the Fed increases rates, the market prices of existing bonds immediately decline. That’s because new bonds will soon be coming onto the market offering investors higher interest rate payments. Businesses and consumers will likely cut back on spending when the cost to borrow money rises.

If raising interest rates feels like something that comes from The Dark Side, why are they doing it? The implications of leaving rock bottom interest rates are that eventually inflation begins to run unchecked. We have seen the effects this year at the grocery store, the gas pump, and department stores as prices have surged in many sectors. This is after the sugar rush frenzy that occurred after billions of dollars of stimulus hit the economy as interest rates remained in the historical lows. It was a perfect storm for inflation to eventually begin to run hot. The Fed’s intent in raising rates is to discourage spending just enough to bring down inflation, without tipping the economy into recession — what economists call a “soft landing.”

As you can see, the Federal Reserve must constantly balance the widespread implications of their policies. Today, they are meeting to discuss the aggressiveness and timing of future rate hikes. I am not a Jedi master; however, I think it is reasonable to expect continued volatility in the stock market as investors grapple the short and intermediate affects that a rising interest rate environment can bring. In the meantime, this could be a good opportunity to review your current portfolio. Some areas of the market tend to do very well or very poorly in rising interest rates, so you want to make sure your current allocations are still performing their intended purpose. As always, we are happy to help you, especially during these uncertain times. As Yoda once said “In a dark place we find ourselves, and a little more knowledge lights our way.

May the Fourth Be With You!

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.