The change in stance by the Federal Reserve from its announced plan in late December to continue hiking interest rates and reducing its balance sheet in 2019, to its early January announcement that it may have reached rate “normalization’ already and will be open to adjustments to its balance sheet going forward, means Powell has fallen into line with his predecessors to provide a protective “Put” to equity market valuation levels. This is a significant policy change, and could potentially extend the market bounce we’ve seen since the start of the New Year. However, economic fundamentals are weakening, so 2019 might continue the volatile pattern from 2018 as the competing forces of liquidity and weak fundamentals tug at valuation from opposite sides. In this podcast, Randy provides some history of the development of the Fed and gives investors some thoughts about what this new dynamic might mean for their portfolios.
Randy has more than 15 years of experience managing financial assets for individuals, retirement plans and businesses. Randy joined YHB | Wealth Advisors in January of 2018 and serves as the Director of Wealth Management. Prior to entering the professional wealth management field, he enjoyed building entrepreneurial business ventures from start-up to eventual sale and providing accounting services for public and private firms.