Federal Reserve officials, global central bank leaders, economists etc. are in Jackson Hole, Wyoming this week for their annual economic symposium. This year’s symposium is titled “Labor Markets in Transition: Demographics, Productivity and Macroeconomic Policy.” That’s a broad title that could drive discussion in many different directions, but the most significant part of the symposium will be when Fed Chair Jerome Powell delivers his speech today. The market has all but priced in a cut from the Federal Open Market Committee when they meet in mid-September. Anything in Chair Powell’s speech that would hint at a delay in rate cuts could lead to some downside pressure in the stock market. However, any knee jerk reaction usually smooths out over the following days/weeks, so staying the course is almost always the best plan of action. Below is the movement in short and intermediate-term treasury yields over the last month (noticeable drop after the July jobs report/significant downward revisions):
Earnings Strength Keeps Stock Market Near All-Time Highs
I cannot write a newsletter without using the word “resilient” 😊. For now, the resiliency lies with the earnings of the members of the S&P 500. As second quarter earnings season is nearing an end – 90% of the S&P 500 have reported earnings. Of those, 81% have reported earnings above estimates, above the 5-year average of 78% and 10-year average of 75%. If 81% is the final number for the second quarter, it would be the highest number of companies beating earnings estimates in almost two years. FactSet Earnings Insight
Financial Planning Corner
It seems everywhere I go, there is more and more talk around the impact of artificial intelligence (AI) on industries spanning from human resources and engineering to legal and financial services. Several weeks ago, I finished the book: “The Psychology of Financial Planning” (captivating title, I know). In all seriousness, it was full of useful information for financial planners, investors and the broader population alike. One of the points the book made was money is deeply personal to most, and while data, key facts and figures etc. can easily be found by a quick google search or Chat GPT inquiry, AI will not replace the human-to-human interaction most seek when dealing with deeply personal topics. The relationships built, connections made, nuances of complex family dynamics and unique situations - it becomes more about emotional intelligence - empathy, reassurance and accountability to another human being. At RSWA, we are at the very early stages of discussing how AI may be incorporated into our workflow and any potential efficiencies it might provide, but the lack of guidelines and regulations from our governing body (the Securities and Exchange Commission) will delay any implementation. Any changes we make will be gradual, incremental and many months down the road. However, in upcoming meetings, you will see a brief mention of AI, as we want to be as transparent as possible with clients.
Property Taxes
Another financial cost of homeownership is property taxes. During my housing search, I came across a couple terms and calculations I did not fully understand. For someone who loves to learn new things – here is probably more information you ever wanted to know about millage rates, effective property tax rates and how they vary from state to state. Millage Rate - Overview, Sources, How To Calculate; Property Taxes by State and County, 2025 | Tax Foundation Maps.
Quick Hits:
- With Labor Day approaching – nothing like a last-minute trip (although – admittedly – I would disagree with their TN recommendation Gatlinburg > Pigeon Forge): The Best Labor Day Weekend Getaways | Labor Day Trips 2025
- The US Open is one of my favorite grand slams, and it begins on Monday. I’ve been fortunate to go to a few, and you can enjoy watching some incredible tennis without spending a fortune – Plan Your Visit | Visit the US Open | Official Site of the 2025 US Open Tennis Championships - A USTA Event
- College football season is less than two weeks away – and I’m just as excited as Donovan (being from the South – there is a level of excitement that most others don’t understand) – here is a list of some of the best college tailgating experiences – Top College Football Tailgating Spots: Where the Party is Just as Big as the Game | News | 2aDays News
- Enjoy the last days of summer with one (or a few) of these - Top 10 Cocktails for Your End of Summer Soiree
Quote:
“The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown” – H.P. Lovecraft
Thank you for reading RSWA Financial Advisor Insights! We welcome feedback, and please forward this to a friend! Be well, take care, and stay safe!
