There is one giant financial difference between the Federal and State Government. The States have to annually balance their budgets, except for Vermont, whereas the Federal Government can run budget deficits…recently record deficits, as you will read in the WMR. This key financial difference is setting up a very interesting equation for there to be some serious trouble at the State level unless there is Federal aid provided. However, aid from the Feds to the States only creates a bigger hole for the Federal Government to deal with in the future. A more immediate concern for the investment markets today is renewed tensions between global superpowers China and the United States. Certainly, expect this political football to be in the air many times as we move closer to our own presidential election.
This week’s Weekly Market Review digs in closer on these issues and related impacts. As always, we hope you enjoy the WMR and find it both interesting and informative.
*Investing Tip – Dollar Cost Averaging (DCA) is one of those simple math equations that just works. With the market being so volatile recently, those that are using a DCA strategy to build wealth long-term are looking smart and feeling a bit better about their portfolio. Learn more about DCA with this very good article from NerdWallet, Inc.
*Good Deed Opportunity – Mother’s Day is approaching quickly (this Sunday fellas) and if you are like me, you have missed spending quality face to face time with your mother. Think creatively about how we can recognize those mothers in our lives, especially those that have had to be socially isolated from their families recently. In case you are like me and have trouble coming up with a gift idea you really like, here is a helpful list from CountryLiving.
Have a good week. Sincerely,
Trevor N. Coe, CFP®