From The Desk of Kevin Hodson

During the past few months, we’ve been reviewing client accounts for tax strategies, i.e., losses, and preparing for Q3. I’ve also been having great conversations with clients about the direction of interest rates and inflation. In short, there’s been little movement. The Fed is keeping interest rates at their current levels and projecting just one rate cut this year, the central bank announced Wednesday, June 12^th, as they wait for some inkling of sticky inflation reduction. In other words, they’re hoping to string together three months or more of consistently better than expected inflation data before bringing interest rates down. We did see good signs in May. Realistically, though, I don’t anticipate any action until after the election. For the markets, that means little volatility, which is good.

Internally, I’ve been meeting regularly with our investment committee to discuss market movements. We’re also conducting our regular due diligence by connecting with various investment managers to ensure they meet the firm’s standards for performance, reliability, and regulatory compliance. We think it’s important to sit down with each money manager at least once per year and focus not only on what they’ve done but, more importantly, where they’re headed. This helps us understand their thought process and whether we may leverage that to our clients’ broader advantage.

At home, I’ve been spending the summer fighting off weeds in my yard in pursuit of the best lawn in the neighborhood. My daughter is now playing on three softball teams, two town teams and one travel. My wife and I split the chauffeur duties, with games running Friday through Sunday in addition to practice during the week. (I’ve included a picture of our daughter at her game on a recent weekend.) Our son is the exact opposite. He doesn’t like sports. He’s a musician, and the electric guitar is his current passion.

Please reach out at any time if you have questions or if you’d like to catch up—or catch a softball game.

AAF Wealth Management is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where AAF Wealth Management and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by AAF Wealth Management unless a client service agreement is in place.