At Marketing Wiz, our team actively monitors global financial markets to contextualize relevant stories for our clients and their stakeholders. This May, here are three themes that can serve as the foundation for a custom long-form article on behalf of your firm:
Boring Bonds? Treasury Volatility Shakes The Market & Beyond
- Bonds are traditionally meant to be ‘boring,’ offering low volatility and stable returns. In recent weeks, however, the bond market has been more exciting than usual.
- In early April, the yield on the 10-year Treasury soared 50 basis points, only to be followed by a nearly 30 basis point decline. This volatility has spread fears that Treasuries may no longer be the world’s safest asset, with rumors of foreign investors liquidating their bonds.
- In reality, much of this market movement can be explained by investor uncertainty regarding inflation. Although this episode highlights the importance of diversification, the fundamentals of the bond market remain strong.
GDP Drops, But May Overstate Weakness
- The U.S. economy shrank to start the year, with GDP declining 0.3% in Q1. However, this decline may overstate the level of weakness in the economy.
- GDP largely shrank due to a surge in imports, which appears to be businesses attempting to get ahead of tariffs. Consumer spending, arguably a more reliable measure of economic activity, grew at a solid 1.8% pace.
- While tariffs are expected to bring economic challenges, we should be cautious about reading too much into this data. In fact, Q2 GDP numbers could recover markedly as imports cool.
Spring Cleaning: A Great Time to Organize Your Finances
- With tax day behind us and springtime in full swing, May is an excellent time to give some thought to organizing your financial life. A few moments of spring cleaning can save hours of frustration down the road.
- Consider whether any financial accounts can be consolidated, such as rolling an old 401(k) into an existing IRA. This can also be a good time to begin working on an estate plan or updating legal documents.
- By keeping your financial life up-to-date and your adviser apprised of any changes, you’ll have the best chance of achieving your long-term goals. This May, learn how our office can support your financial spring cleaning.
Interested in building out long-form collateral relating to any of these themes? We invite you to reach out to our team today for a discussion of our custom content capabilities.