Formidable Asset Management LLC

This week, Will and Adam dive into how election cycles influence markets and compare the effects of extreme weather events to the impact of post-COVID stimulus on inflation, stocks, and bonds. Episode #75 is out now!

Out today, episode #75, Will and Adam explore how markets react to the election cycle and the impact of extreme weather phenomena, drawing comparisons to post-COVID stimulus effects on inflation, stocks, and bonds. Listen now on Apple Podcasts, Spotify, and more! Links to each in comments.

With the presidential election looming, it can be tempting for investors to react emotionally based on whether the outcome favors their preferred party. However, what history shows us (according to data compiled by Bespoke Investment Group) is that the most important thing is remaining invested and giving your money time to compound, regardless of who controls the White House.

While the Fed rate cut may offer some relief to small businesses, will it be enough? Not since the early 1980s have we seen such a disconnect between the S&P 500 (near all-time highs) and small business profits (third worst since the 1970s). Seems like something has to give as the U.S. economy relies heavily on small businesses to drive employment and growth. #SmallBusiness #Economy #FedRateCut #SP500 #BusinessGrowth #EconomicTrends #Employment #Entrepreneurship #BusinessProfits #MarketTrends #EconomicOutlook Information contained in this post is general in nature and for informational purposes only. Neither the information nor any opinion expressed should be considered as solicitation to buy or sell a security or personalized investment, tax, or legal advice. We cannot guarantee the accuracy of information from third parties. https://lnkd.in/gwMP9DrS Source: Bloomberg

Bond investors are sending a clear message to the Fed: cut rates...a lot. The normally close relationship between the Fed Funds Rate and the Two-Year Treasury has diverged widely as of late, and now stands at 172 basis points. The last time we saw a divergence close to this large was in the lead-up to the financial crisis in 2007. #FederalReserve #BondMarket #InterestRates #TreasuryYields #EconomicOutlook #FinancialCrisis #MonetaryPolicy #FedFundsRate #InvestmentTrends #Inflation #RateCut #USEconomy #MarketAnalysis Information contained in this post is general in nature and for informational purposes only. Neither the information nor any opinion expressed should be considered as solicitation to buy or sell a security or personalized investment, tax, or legal advice. We cannot guarantee the accuracy of information from third parties. https://lnkd.in/gwMP9DrS

We hear a lot of market pundits talk about “cash on the sidelines” as a potential trigger for a move higher in stocks if the Fed cuts rates. While cash in money market funds is indeed at record levels in nominal terms (over $6 trillion), relative to the size of the total stock market, it is well below average. It is important to understand context, especially when household allocations to stocks are at or near record highs already. #MarketInsights #StockMarketTrends #InvestmentStrategy #FedPolicy #FinancialLiteracy #MarketPundits #MarketContextMatters #CashOnTheSidelines #EconomicOutlook #InvestmentRisk Information contained in this post is general in nature and for informational purposes only. Neither the information nor any opinion expressed should be considered as solicitation to buy or sell a security or personalized investment, tax, or legal advice. We cannot guarantee the accuracy of information from third parties. https://lnkd.in/gwMP9DrS

Small businesses are facing their first period of sustained higher real borrowing costs since before the great financial crisis. With the prime rate (what banks charge their “best customers”) at 8.5% and inflation at less than 3%, small businesses are starting to feel the pinch. A timely topic for the Fed’s ongoing Jackson Hole symposium, aptly titled “Reassessing the Effectiveness and Transmission of Monetary Policy." Information contained in this post is general in nature and for informational purposes only. Neither the information nor any opinion expressed should be considered as solicitation to buy or sell a security or personalized investment, tax, or legal advice. We cannot guarantee the accuracy of information from third parties. https://lnkd.in/gwMP9DrS

As we navigate these turbulent times, it's hard to ignore that the essentials we rely on—shelter, electricity, insurance—are outpacing even the CPI in price hikes. It's a reminder of the growing challenges in securing the basics that keep us safe and comfortable. #Inflation #CostOfLiving #consumerpriceindex #EconomicTrends Source: https://lnkd.in/edKQeYea Information contained in this post is general in nature and for informational purposes only. Neither the information nor any opinion expressed should be considered as solicitation to buy or sell a security or personalized investment, tax, or legal advice. We cannot guarantee the accuracy of information from third parties. https://lnkd.in/gwMP9DrS

While this week’s cooling Consumer Price Inflation (CPI) data has bolstered the case for a Fed rate cut, consumers are still feeling the effect of higher prices. If everything seems way more expensive, that’s because a dollar in 2020 is now worth only 82 cents. #ConsumerPriceIndex #InflationImpact #FedRateCut #CostOfLiving #EconomicTrends #PurchasingPower #FinancialReality #Economy2024 Source:https://lnkd.in/edKQeYea Information contained in this post is general in nature and for informational purposes only. Neither the information nor any opinion expressed should be considered as solicitation to buy or sell a security or personalized investment, tax, or legal advice. We cannot guarantee the accuracy of information from third parties. https://lnkd.in/gwMP9DrS

New Episode Alert: Tea and Crumpets Podcast The wait is over! Will Brown and Adam Eagleston, CFA are back with Episode 71: Hiatus Over. Dive deep into the latest market movements as they break down the recent turmoil. From recession worries to Japanese bank policies, they’re dissecting the causes behind the sharp decline, rapid rebound, and spike in volatility. Tune in to understand what's normal in today’s market and what anomalies should raise your eyebrows. Listen now and stay informed: https://lnkd.in/gYkBkX8V #Finance #MarketAnalysis #InvestmentInsights #FormidableAssetManagement Information contained in this post is general in nature and for informational purposes only. Neither the information nor any opinion expressed should be considered as solicitation to buy or sell a security or personalized investment, tax, or legal advice. We cannot guarantee the accuracy of information from third parties. https://lnkd.in/gwMP9DrS