Episode 25: How the US Federal Reserve’s decision is impacting the market

The US Federal Reserve met to determine the future of financial markets,  announcing interest rates will continue to rise by 0.25%, from 2.25% to 2.5% – the 4th interest rate increase this year.

Once Jerome Powell addressed media the market began to rebound, however when questions began, the rebound started to unravel and the market fell away.  Analysts were hoping for news that the Fed would come out with some commentary that they would no longer raise interest rates into 2019, due to the signs of softening in the global economy and the potential of a US government shutdown with Trump wanting his wall built across the border of Mexico. Tune in for more on the story now.

For professional advice on planning and thinking ahead on your investments when markets are down, contact United Global Capital today on 03 8657 7640 or email info@ugc.net.au for a no cost, no obligation consultation.

Our Investor Exchange Round Table Discussion Covered:

  • Louis explains how to react to dips in the market and how to take the emotion out of investing by mentally deciding that you are handing your money to a different person; your future self. (18:56)
  • Joel explains why the biggest risk to your finances is not being in the market. He delves into how the risk of permanent impairment of your capital is what you need to be concerned about, not whether market fluctuates by 10-20% during any particular point in time. (24:39)
  • Brett discusses APRA’s removal of the speed limit they put on the interest-only lending restrictions, due to a number of changes and regulations imposed that was negatively impacting the property market. Tune in to find out why you should be meeting with your mortgage broker over the next few months.  (28:58)

You Cannot Be Serious this week:

  • A gentleman in Tasmania was arrested recently by trying to pay for his McDonalds with a bag of weed!
  • A Louisiana woman’s choice of Christmas decorations led a nice little note on the woman’s doorstep, stating her dragon decorations made her neighbours believe she was a part of a demonic cult.
  • A woman in the US faked a husband, stating he was a firefighter in the California wildfires, and raised money for her fake unborn child.

If you would like to speak with a professional investment adviser about how your portfolio is positioned for the year ahead, contact United Global Capital today on 03 8657 7640 or email info@ugc.net.au for a no cost, no obligation consultation.