Happy February.
Well, congratulations to all those who live in Massachusetts. You are cheering Brady’s 6th Championship ring, the most by a player ever. If you live in the rest of the USA, you were bored watching the game.
Which leads me to a more serious point.
Starting quarterly, I will send emails about financial planning tips, life & long-term care ideas, lending products, and many other competitive items that Raymond James produces.
Now for an update,
Daniel Lacalle, a prominent economist, produced a fascinating statistic last week.
It was a chart that showed the Global Money supply, and he focused on removing 3 trillion in global Credit from April to December 2018. This is partly because the Federal Reserve was hiking interest rates way too fast! Something you have heard me talk about.
Since then, there has been a gigantic boost in Credit from late December till now of 2.3 trillion. This explains why stocks, bonds, and Credit have all rallied higher since the beginning of the year and is, in part, the result of the Federal Reserve not raising rates and indicating they will stop.
Remember, Credit is the engine of every financial asset.
This statistic that Daniel produced is a reasonable risk management indicator for all of us. If I call you later in the year and start talking to you about it, I have not gone crazy.
Regards
Christopher R. Lakian