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The S&P 500 Hit 3000! What Comes First: Trade, The Fed, Interest Rates, or Yourself?

by Financial Design Studio, Inc. / July 10, 2019

The S&P 500 hit 3000. Did you miss it this week?

After news from Fed Chairman Powell the market rallied slightly to reach a new all-time high. We aren’t certain of whether the Fed will lower rates as the market hopes.

Will it be by a full 1% when they do or just half of a percent?

The Fed said nothing has changed in their thinking of plan, which again is a bit vague for what action they will take. Trade talks with China seem to be progressing depending on the story of the day.

With the higher highs as the days move on do you wonder how what matters first in how you invest your portfolio? There are news headlines both good and bad that can leave you questioning the smart move.

Here’s a list of the potential items you could be trying to prioritize:

1. Trade deals and/or tariffs with other countries

2. The Fed’s decision on whether to increase or decrease interest rates

3. Your own timeline whether near retirement or a goal like buying a home

4. The next Presidential election

If you choose any one of these over the other it could prove to be an outcome you weren’t prepared for. We suggest starting with your own timeline whether near retirement or a goal like buying a home.

That’s something we can think through together!

If you pick any one of the issues in the list above and invest too aggressively, you could set yourself up for volatile days ahead if your plan doesn’t come true.

Now if you start with your own timeline and realize “you’re near retirement” then you’d want a portfolio that fits your comfort level. You will be able to withstand whatever outcome is in the list of items above.

With the higher highs each day, we suggest taking a look at your risk level and determining if you’re ready for whatever outcome should come.

Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.

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Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.