From the Desk of Dale Crossley and Evan Shear

We hope that you and your loved ones are staying well. For this edition of The Journey, you’ll find some timely articles on Medicare open enrollment and 529 Plans. We’ve also given our “From the Desk of Dale and Evan” a new title – “Déjà vu All Over Again.” In our last quarterly edition, we were essentially dealing with many of the same issues as we are now. Although the markets continue to do very well – and for that, we’re grateful – on the horizon, we have ongoing concerns about inflation and the potential for rising interest rates. The surge of cases due to the delta variant, not a concern last quarter, is the one new caveat. The surge may be starting to have a slowing effect on the economic recovery.

We’re continuing to see the greatest surge in U.S. inflation in 13 years, with most thought leaders affirming that it’s transitory and as supply chains are improving, inflation will settle down. While some sectors are meeting the demand for goods, others are experiencing shortages of labor and materials. At this point, we’re not sure how much of this might be caused by the delta variant surge and whether it has the potential to further affect the supply chain and, ultimately, the economy overall. 

With headlines continuing about the rise in inflation, concerns about the possibility of rising interest rates go hand-in-hand. There’s a delicate balance between keeping interest rates low, the Fed’s most powerful tool in helping the economy recover from the pandemic, and the need to keep inflation in check. However, the weak job reports from August, with lower than expected job creation, creates more complexity. The slowing may be due to several factors, including the summer season, but may also indicate that the delta variant is beginning to affect the economy. Nevertheless, in light of the slowing in the job market, experts believe the Feds will keep interest rates low and tolerate some inflation. For more detail, you can watch Raymond James’ Scott Brown, Chief Economist, brief but informative video here

We’re certainly hoping that the next quarterly issue will be “Déjà vu All Over Again” where market performance is concerned. As always, if you have questions or concerns, please reach out – that’s why we’re here.

We hope that you and your family continue to remain well. 

Take care,

Evan Shear                                                                                    Dale Crossley, JD
CERTIFIED FINANCIAL PLANNERTM                                  Financial Planner

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