The body that determines Monetary Policy, the Federal Open Market Committee (FOMC), concluded a regularly scheduled two-day meeting two weeks ago and to no one’s surprise, decided to leave interest rates unchanged.
Many investors associate risk with a loss of principal. And, indeed, that is one definition of risk.
Originally, we set out to address the most common investor fallacies that we work to protect you from as your fiduciary financial advisor. We quickly found ourselves pulling and pushing at the yin and yang of traditional (rational) economics and behavioral economics.
Buoyed by an effective choice of available vaccines and an accommodative Federal Reserve, the economy appears headed toward the fastest pace of economic growth since the 1950s. This has also pushed stocks, interest rates and inflation higher.
