“It is only the farmer who faithfully plants seeds in the Spring, who reaps a harvest in the Autumn.”
-Richard L. Evans
Here’s what you need to know this week:
· Stocks slightly higher after rate hike
· A brief pause in the Iran War and President Trump hosts Chinese President Xi Jinping
New Office – Three Weeks Away!
Quick reminder, we’re moving! Our new office is located about one mile from our current office:
Our old office is circled in red and the new office is circled in green. Our new address will be 3817 NW Expressway Ste 1030. We officially move in about three weeks and we’re excited for everyone to see the new space!
Rates Rise
The Federal Open Market Committee (FOMC) voted unanimously to raise interest rates by 25 basis points (0.25%) last Wednesday, bringing the federal funds rate to 3.75 – 4.00%:
Fed Chairman Kevin Warsh gave a press conference shortly after the announcement and emphasized his commitment to bringing down inflation, stating “The plan fact is that inflation is too high and has been for too long”[1]. Markets rose after Warsh’s presser, seemingly assured that Warsh will retain independence for the Federal Reserve despite President Trump’s public hectoring for lower rates. The FOMC will meet again on the last week of October and the bond market is currently pricing in a 53% chance of another 25 bp rate hike[2].
Foreign Flurry
Geopolitics take center stage in the markets this week. In the Middle East, President Trump called off a major strike on Iran on Sunday as a show of good faith in peace talks with Iran. President Trump also addressed the UN General Assembly on Tuesday, stating that he “has a big decision to make” on Iran and still has all options on the table[3].
The war continues to drive oil prices in both directions. Brent Crude, the benchmark price of Middle Eastern oil, fell from $110 per barrel to $98/bbl in the wake of the pause in fighting. Consumer gas prices still remain very elevated compared to before the war:
President Trump is also hosting Chinese President Xi Jinping tomorrow night for an AI summit dinner where the two will discuss each nation’s approach to future AI development. CEOs of key AI development companies such as Nvidia, OpenAI and Qualcomm will also be in attendance[4]. President Trump has not yet released an agenda for the talks but a deal or framework could have wide-ranging impacts in the artificial intelligence industry.
What Else
· Warren Buffett, arguably the most famous investor in history, is stepping down as Chairman of Berkshire Hathaway at age 96; his son Howard, age 71, will replace him
· Several media outlets pulled their coverage of the White House in response to President Trump banning CNN, MS Now and Politico from the White House
· A Nor’easter is set to slam the East Coast with rain and flooding this weekend
· OU plays #2 ranked Georgia this Saturday at 2:30 PM CT on ESPN
· OSU plays West Virginia this Saturday at 6:00 PM CT on FS1
What We’re Reading
New cat alert? Scientists say they have discovered a new species of feline in the Andes Mountains in Bolivia. Named tilcayo, this marks the first time in more than a century that a new species of feline has been documented. Click below to read about the discovery and to see photos of the first documented tilcayo, who researchers named Tigrino:
· Tilcayo, A New Feline Species
What’s Happening Downtown
Fourth Fridays returns to the West Village District this Friday, September 25th. This month’s theme is Slamtober Fest and will feature live professional wrestling on Lee Avenue from 6 – 10 PM. The event will also feature the usual deals, specials and live music throughout the district, including family-friendly activities such as a free bounce house and petting zoo. Click below for a full list of activities and participating businesses:
· Fourth Fridays in West Village
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Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, CFP®, Brandon Ingerson, Bill Daniel, Sam Postich, Jenni Hess, Hannah Hartman