U.S. Raises Interest Rates

December 16, 2016

U.S. Raises Interest Rates

What happened and what it means to you.

Yesterday as expected the US fed raised their target federal funds rate to 0.75%. In her speech Federal Reserve Chairman Janet Yellen stated that “Job gains have been solid in recent months and the unemployment rate has declined” in addition inflation has increased “considerably”. These are good signs that the economy is recovering at a strong pace than expected at the beginning of the year. They believe that it is growing strong enough that the Federal Reserve anticipates another 3 raise hikes before 2018 and continue into 2019, eventually bringing the US fed fund rates closer to their long-term average. This means the US will still experience below average interest rates for the next 2 years.

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US Elections – Reality TV’s Finest Moment

December 5, 2016

Is there any more that I need to say besides that Donald Trump was elected President of the United States of America? Probably not, as it is old news by now. However, as expected we saw a bit of panic and then the markets resumed their upward trend. The only surprise was that the panic was very short lived as the stock market opened higher the very next day despite the pre-market futures being down as much as 4% overnight. The Mexican Peso was the biggest loser as a result of Trump’s election as it fell by as much as 13% the very next day.

We had an excellent guest speaker event last week with Anthony Scaramucci, a member of the US National Financial Advisory Committee and a key participant on the President-Elect’s transition team. He provided us and our guests with more detailed insight on how Mr. Trump is planning on accelerating US growth. The event was a success with tasty refreshments and a wide array of new and old luxurious exotic cars to experience.    

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