The Month Of July In The Markets

Happy August everybody-crazy summer is almost over! As we head into the last month of summer, we want to take a moment to review what a month July was in the markets. As you can see in the chart below, we had a good start after July 4th, then came down and rocketed higher. On the week of July 15, after we had the CPI inflation data announced hotter than expected at 9.1%, the markets fell for two days following that news, but since then we’re pretty much up in a straight line from there with the NASDAQ leading the way at 11.35% to mark its best month in two years. We also saw the S&P500 hitting almost 8% and the Dow at 5.6%.

A lot of folks, of course, are calling this a bear market rally or some type of relief rally. Even with July’s strong numbers we are still down significantly year to date marking the worst first six months of the year since the 1970s. 

So will we see the rally continue into August? Or is this just a bear market rally? We will find out soon. A lot of what we found has been tied to interest rates. We see from this chart, mortgage rates completely rolling down to 5.3% as of last week, and the chart as high as 5.8%. Housing is obviously a huge part of the US economy, so many folks are worried about how this will impact their housing agendas, but we will continue to track it for you. 

Additionally, we saw Treasury yields slip and as you can see from here, the yield curve is inverted. Remember that means that short term rates are higher than long term rates. So you see the 10-Year Treasury rate down to 2.6% fallen from a high of 3.5% in the middle of June when the market was really at its lows, so a real massive rally in both bond price and market price with almost a 100 basis point drop there from 3.5% to 2.6%. 

So if you are in the market for a home, talk with your lender, see if you can get a lower rate. Of course, we’re also seeing people still in 0% interest rates on their FDIC insured savings at money center bank still earning zero, while we’re seeing high yield savings in the mid-1% range. And if you want to tie up the money for a bit longer, CDs are in the 2% to 3% range.


Next we want to talk about what we discussed in June, consumer sentiment, which is still close to all time lows, even though we saw a very, very slight uptick in the last reading. However, we want to hear from you- What are you feeling about the talks of a recession and such high inflation?  We’ve heard that the Federal Reserve will be hiking rates once again in their next meeting in September and probably in October. What are you doing differently in this type of environment? Where did your consumer sentiment fall in July? Let us know at

Financial Tips As Recession Talks Loom

It’s certainly been quite a year, with the stock market having its worst first half of the year since 1970. As we’ve been weathering this extreme market volatility and watching the Federal Reserve hike interest rates to combat hot inflation, many believe a recession is near if not already here in some sense. With talks of a recession being thrown around, many are worried about what that might look like for them and ways that they can prepare. So, let’s take a look at some ways you can prepare and stay on top of your finances in the case of a recession. 

First and foremost, recession or not, establishing a financial plan should be your priority. Despite what the future holds, all the economic change in the fast few months should be an indicator of the importance of a financial roadmap and financial organization. If you already have a financial plan, now is a great time to revisit it to ensure your plan is equipped to weather not only the good times, but the bad as well. 

Next, think about adjusting your budget. We’ve been talking about this a lot, but with record-high inflation numbers and the Federal Reserve rising rates, many individuals are feeling the impacts of rising prices in their day to day. If you are feeling it too, you might want to think about cutting out old unused subscriptions or just accounting for inflation within your budget to ensure your cash flows align. 

Another tip when anticipating a recession is funding your emergency bucket. Your emergency fund is a crucial safety net to have, especially during uncertain and unprecedented times. Make sure you are comfortable with the value within your emergency fund in case you need to utilize those funds. Today, jobless claims hit its highest level since January coupled with surging layoffs, so update your resume and always protect yourself in the event of layoffs. 

In this rising-interest rate environment, we want to touch on variable interest rate debt and paying off your loans. If you are in the position to, think about paying off your debt, especially ones with variable interest rates, that could continue to increase with the Federal Reserve rate hikes. 

Most importantly, remember the importance of sticking to your long-term plan and try not to get too spooked by the markets. We know market volatility can be stressful, but it’s prudent not to derail years of your time in the market. Re-visit your asset allocation and ensure you are properly invested in the market. If you are having trouble sleeping at night because of your portfolio, you may be allocated incorrectly in correlation to your risk tolerance, so think about reassessing that as well. While these are only a few points to think about, if you have any questions about your personal financial situation or would like to establish a financial plan, we are here to help. Email us at or schedule a complimentary intro call here


Why Organization Is So Prudent In Your Financial Life 

Do you have questions about the markets and skyrocketing inflation? Well, we’re here to break it down for you. We have officially entered a bear market in the S&P500. The markets have gone down 8.9% in the last three days, which is a historic figure. Friday’s consumer price index (CPI) report revealed that inflation was not as contained as investors had thought, leading to huge spikes in Treasury Yields, with the 10-year Treasury note up to 3.44%, hitting its highest level since 2011. The 2-year yield to 3.42%, and the 2- and 10-year yield inverted for the first time in quite some time. We also saw massive increases in mortgage rates. We will continue to monitor and ultimately see how these increases in rates will impact the consumer and the housing market, along with the dollar hitting 20-year highs. 

Due to the 4-decade high inflation numbers, all eyes are now on the Federal Reserve meeting tomorrow where they now anticipate to raise rates by 0.75%, the biggest rate hike in 28 years. Previously, Fed Chair Jerome Powell said that a 0.75% raise is off the table but with the CPI report from Friday, things seem to have changed. 

So, given this uncertain economic climate we are in, we want to make sure we discuss the timeliness of establishing a financial plan and getting organized. We wrote a recent blog that uncovered that many Americans do not have any sort of financial plan, which is worrisome during this time. For those of you who may be panicking about the market declines and volatility, along with the rapidly rising cost of living, you should consider re-visiting your financial plan as a whole, re-thinking your budget, asset allocation, cash flows, and overall goals. Whether you have a financial plan or not, it’s never a bad time to get started or updated to make sure you are on the right path and headed in the best direction. 

Have you automated your finances yet? With the great technology we have today, it’s so easy to aggregate your finances all in one place, so you have access to it at all times. Taking a look at everything you have and seeing the bigger picture will help you make smarter financial choices in uncertain times or economic downturns. At Sherman Wealth, we utilize state-of-the-art financial planning software that allows you to see your whole financial picture at your fingertips. If you would like to trial our financial software, email us at and we are happy to help.

We believe it’s important for all individuals to have a financial roadmap that will help them navigate murky waters as well as ride out the high times in order to achieve long-term financial success. We know that economic uncertainties in the market can be stressful, so we are here to help you through it. We will be following rates for you after tomorrow’s Fed meeting along with this hot inflation data. Stay tuned for more updates and let us know how we can help you with your personal financial situation. Email us at if you have any questions or schedule a 30-minute complimentary intro call here

A Look At Market Volatility Thus Far In 2022

What a wild start to the year it’s been with inflation surging, the Russia-Ukraine war, and the Federal Reserve rising interest rates. When the world and country faces economic events such as these, the markets, just like the consumer, digest and respond. So, let’s take a look at how some of these economic events have impacted not only the consumer, but the stock market as well.

As you probably already know, inflation has skyrocketed this year, having a large impact on the cost of living and pretty much everything, as you can see in the YoY CPI report charted below.

As we’ve watched inflation take off, we’ve been thinking a great deal about the consumer and what they have been seeing and feeling. Have you been spending more recently? If so, what areas are you spending more money on? Have higher gas prices impacted your interest in travel? The chart below shows consumer sentiment near all time lows, really depicting the effects that inflationary prices are having on individuals’ financial picture.

Are rising prices beginning to alter the way you spend your money? If so, we are here to help, so let us know if you would like for us to revisit your budget and financial plan during this time. 

For those of you who have been investing in the stock market, you may be feeling a sense of anxiety as the market has been extremely volatile in response to earnings season, rising interest rates, inflation, and more.

However, we want to show a zoomed out picture of stock market returns and pullbacks over time. At Sherman Wealth, we always emphasize the importance of time in the market instead of timing the market. As you can see in the J.P. Morgan slide on the right, time is your best friend. Try to remember to stay calm and think about your reason for investing in the first place along with your time horizon. If you are a long-term investor saving for retirement, take a close look at the overall returns and drawbacks overtime, as you have many years ahead of you for your money to grow. 

We know the past few months have weighed heavily on the economy; however, we urge you to stay calm. If you have any questions about the current market environment or your own specific financial portfolio, please let us know and we are happy to help. Email us at or schedule a complimentary 30-minute consultation here.  

Inflation Rose 7% in The Past Year, the Highest in 40 Years!

Have you been feeling the impacts of inflation? I’m sure you have. The Labor Department reported on Wednesday that inflation rose 7% over the past year, the highest in 40 years! And on a monthly basis, they reported that CPI rose 0.5%. “The annual move was the fastest increase since June 1982 and comes amid a shortage of goods and workers and on the heels of unprecedented cash flowing through the U.S. economy from Congress and the Federal Reserve,” according to CNBC. Not only will this data continue to affect the prices of things we buy and purchase everyday, but it will also have a dramatic impact on interest rates and as we talked about last week, the 10-year treasury as well.


These inflation numbers are quite notable as they will affect aspects of life and personal finance dramatically, in contrast to the declining rate environment we have been in the past few years. Make sure you are understanding the impacts of the Federal Reserve increases and rising rates on your life and portfolio. If you have any questions about how these increases and economic data will affect your personal financial situation and smart financial moves to make, reach out to us at or schedule a 30-minute complimentary meeting here. 


Unpacking the Stagnant Stock Market

As we end the second quarter, we want to take a look at where the U.S stock market is after this past year of ups and downs. Currently, the U.S. stock market is very stagnant on the outside, but industry analysts are discussing how it’s really bubbling underneath, more than it has in years. 

From the outside, the S&P looks very very quiet, more than it has been in some time, precisely 2017, according to a Wall Street Journal Article. In addition to that, we are seeing stocks at the highest prices since 2000s. Analysts are noting that it has to do with the recently trending short-squeeze stocks, such as GameStop, AMC, and Blackberry, inflating the stock market increasing prices all around. 

We are also seeing chatter around how the Federal Reserve has such strong power right now, in terms of controlling and affecting the stock market. It’s interesting to think about the reaction to such a small change from the Fed, allowing us think what type of reaction there will be if the Fed starts a normal rate hiking cycle and makes cash attractive again. We will continue to follow the news from the Fed and discuss how we think that will affect the economy and stocks. If you would like to discuss the market with us and let us know your thoughts, email us at .


Where the Market Is A Year Since COVID-19 Began

As we approach the one-year mark since the coronavirus pandemic (COVID-19) began, we want to reflect on the year that the market has had. Its been quite a wild ride, especially in the past week or so, with the 10-year treasury yield hitting its highest level in one year, reaching 1.619%, to date. We have also seen a great deal of volatility in technology stocks, as they are currently down relative to the Dow Jones Industrial Average.

As we continue to see volatility a year into the pandemic, we want to stress knowing your timeframes, understanding volatility along with time in the market versus timing the market.

Below we have attached a chart from JP Morgan illustrating the difference in return if you were to miss the best days in the market. This chart will help you see the true understanding of sticking to your long term plan.  Check out the video below for Brad’s take on the market in detail, including tax implications, timing the market, and more. Let us know what you think and reach out to us with any questions at

Here Are The Impacts Of The Skyrocketing 10-Year Treasury Yield

Due to tremendous economic aid, interest rates, particularly the 10-year treasury yield, has skyrocketed back up towards where it was a year ago around 1.2%, prior to the coronavirus pandemic.

We have been following this rate quite closely on our instagram handle, @shermanwealth, as we recorded it last week hitting 1.6%. Of course this spike has created tremendous volatility in the housing market in terms of interest rates as well as the stock market in terms of how equities have been priced.

We will continue to follow the 10-year treasury yield closely for you all. Check out the video below for Brad’s take on these interest rates and the effects they are having countrywide. As always, if you have any questions for us, please reach out with questions at or schedule a complimentary 30-minute consultation here


Here’s How Bitcoin Will Affect Your Taxes

Getting swept up in the crypto-currency craze? Thought so. Since the coronavirus pandemic took its toll on the world in March, bitcoin has rocketed towards the sky. Hovering at approximately $5,000 in March, bitcoin broke its record high at $50,000 this week as you can see in the chart below.  

With the increase of interest in meme stocks and crypto-currency in recent months, we want to bring light a facet of these stocks that you may not be thinking about. With tax season beginning as discussed in our previous blog, you should take a second to look at the tax implications involved with bitcoin and meme stocks. If you are to get swept up in day trading on Robinhood or other platforms, you should know the difference between short and long term tax rates. It’s important to note that some of these alternative coins cannot convert to cash, which could cause some complications when it comes to your taxes. Most people are not aware that if you hold onto any asset for less than 365 days, it will be taxed as ordinary income, which can get quite expensive for some individuals, as you can see in the chart below.

No matter what asset class you are investing in, keep in mind that it’s either most tax efficient in a retirement account or to hold onto for more than a year. If you are day trading or thinking for the short term, be very aware of the tax implications and how that affects the overall return of said investment.  If you do not plan on selling your investments or are thinking about selling, it is important to understand  these tax implications as well. As always, make sure you understand the risks involved before investing  and only risk what you can afford to lose. When listening to the media and the Dave Portnoy’s of the world, it’s easy to swept up in the hype; however, these influencers do not usually discuss the serious tax surprises that these investments can have. Sherman Wealth is charitably inclined, and if you are as well you might want to consider setting up a donor advised fund or donating your gains right to charity if you are sitting on gains before selling. 

While it may be exhilarating and increasingly popular to get involved with meme and heavily shorted stocks, keep in mind the complications and volatility involved. At Sherman Wealth, we always encourage you to keep a diversified portfolio that will benefit your financial future and goes along with your individual risk tolerance and financial plan. If you have any questions about anything discussed in this blog or need help finding the right tax professional to help you with your tax return or discuss donating assets to charity, please reach out to us at or schedule a 30-minute consultation here


Deep Dive into Wall Street’s Rollercoaster

In our previous blog, we discussed the recent short squeeze events that occurred on Wall Street. In addition to the short stock names, the last thirteen months in the stock market have been a rollercoaster, with the coronavirus pandemic, the federal reserve, post inauguration record market highs, an influx in “TikTok” day traders, and a great deal of record earnings reports. Check out the wild ride the stock market took in the last 12 months.


Through all these various events, social media has played a large role. News sources, TikTok, the twitter world, and celebrities have blown up the media, sharing their opinions and beliefs. The Dave Portnoy’s of the world believe one thing, while Mark Cuban, Ja Rule, and TikTok are saying another, that’s what makes a “market”. Remember some of these same people told you to sell at the bottom in March when COVID-19 was hitting. With the strong influence and prevalence of social media, it’s hard to know what to believe and where to get your conflict-free advice from. Remember, these TikTok “experts” and celebrities are not financial advisors and do not have the full scope of your financial situation when they post their advice online.  

We know it’s hard not to get swept up in the media and fads at the time, but we encourage you to drown out the noise and focus on the decisions that really matter. Focus on your long-term investment goals and strategies to make sure your financial future is secure. For those who are involved with short-term investments, remember to only risk what you are comfortable with losing and keep in mind tax implications. Everyone’s situation is quite different, and the media won’t always reflect your personal financial situation. 

When the market is volatile and unexpected events may occur, however, we encourage our clients to try to ignore the investment biases that occur. At Sherman Wealth, we believe that all individuals should have access to capital markets, no matter their financial situation. We encourage our clients to diversify their portfolios, invest fearlessly, but successfully at the same time. We know this last year has been a wild ride and quite confusing for some, so we want to help you understand. If you have any questions or would like to discuss how we can help your current situation moving forward, please contact us at or schedule a complimentary 30-minute consultation here