David Fleer
Bristlecone Value Partners, LLC
12301 Wilshire Blvd., Suite 320
Los Angeles, CA 90025 USA
Work 1-877-806-4141

Some Year-End Thoughts

December 24th, 2015

As the year comes to an end, we wanted to thank you for your trust in our services. We’ve worked with some of you and your families for more than 20 years now, and it is much appreciated.

Last Wednesday, seven years almost to the day since its last move, the Federal Reserve finally raised the federal fund rate target by ¼ of one percent. This was a move that had been anticipated for quite a while as our commentaries for the past year will attest.

So what now? Current expectations are that the Federal Reserve will keep raising short term rates by a quarter every 3 months or so for the next year. Don’t expect your savings or money market account to earn more interest just yet. Although banks were prompt to raise the prime rate to 3.5% from 3.25% last week, it will mostly mean higher rates on credit card, consumer loans and home equity lines of credit. In other words, you’ll pay more if you owe such debts, but will not earn more on your savings just yet. This increased interest rate spread will benefit banks, especially the big deposit institutions such as Bank of America, Wells Fargo, or JP Morgan Chase. Read the rest of this entry »

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