Broker Check

Mosaic Asset Partners - OOPS, Don't Get Too Comfy

November 10, 2023

I have been in a nostalgic movie mood lately. Earlier this week I was thinking about that scene in “Ferris Bueller’s Day Off,” where Ferris takes the stage on a parade float in downtown Chicago and belts out his best lip sync version of “Twist and Shout” by the Beatles. It’s a memorable moment where the entire crowd goes crazy, dancing to the famous tune in unison and leaving their everyday worries behind for an instant. {As a side note, the scene in that movie where his boring economics teacher while taking attendance utters, “Bueller? Bueller? Bueller? Bueller?” still ranks high in my opinion (follow the link below for reference!)}. But I digress. I think we all have been feeling a bit better about the market performance over the last few weeks in light of the sloppy third quarter we experienced. Some level of confidence began to reappear, especially after the Federal Reserve meeting that wrapped up last week showing signs of more positive news on the horizon. Visions of dancing and singing were playfully lingering in my mind again.

But reality came back front and center on Thursday when Fed Chairman Powell shared his remarks. Fed Chair Powell said he and his colleagues remain steadfast in getting policy in line with their 2% inflation goal, but “we are not confident that we have achieved such a stance.” This may have deflated things a bit, but honestly, we shouldn’t be surprised by all of this. Work is still to be done on many levels to achieve the stated and well outlined goals of the Fed. We have always known there was not going to be an easy path to calming the waters. He did stress, however, that they intend to remain cautious and that the “risks between doing too much and too little have come into closer balance.” The “walking a tightrope” mantra is ringing loud and clear. I certainly understand and respect the ever-important role they play in this economic chess game and still believe that we will walk away from this experience with a more confident mindset for the future.

I want to revisit our old friend the I-Bond for a moment. I know many of you have purchased these over the last few years as they have provided a safe and secure source of income and protection for your idle cash. The latest version of these are paying 5.27% interest (November 1st through April 2024). This is actually slightly higher than the rates (4.3%) that were paid from May through October of this year. The current rate of 5.27% is more aligned with where the 6-month treasury and some higher yielding savings accounts are paying. Had the I-Bond rates remained below 5%, we may have considered shifting strategies. Now that we know they have reset higher, we are content to leave them as-is for now. This will remain on our radar screen as we move into 2024. As always, we welcome your questions on how to handle your specific planning needs. Remember, you are allowed to purchase up to $10,000 per Social Security number, per calendar year!

We remain busy, seeing many of you in person, via Zoom, or with a simple phone call.  As we wind down the year and begin to think ahead, let us know if something has changed in your life that needs our attention. It’s never too early to plan for your future or simply feel comfortable about where you stand today. For now, I will go back to dreaming and dancing. Singing, not so much!

Enjoy your weekend.

Christopher E. Wasson, CFP®


Mosaic Asset Partners, LLC

1122 Kenilworth Drive, Suite 310

Towson, MD  21204

410.821.0089         fax 410.821.5993                  

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Mosaic Asset Partners, LLC is not affiliated with Kestra IS or Kestra AS.  Investor Disclosures:

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.