By Gregory Heym, BHS Chief Economist and and host of Crossing The Line
Today, we have the latest from the Fed, tell you what people believe is the best long-term investment, celebrate the first of hopefully many trade deals, and givve thanks to all the moms out there.
The Fed Leaves Rates Unchanged
This was not a surprise, and there isn’t a lot to say about it except:
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The Fed has become more worried about the economic outlook.
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Markets expect the Fed to start cutting rates in July, followed by two more 25-basis point cuts for a total of 0.75% this year.
We're Number One!
A recent survey of 1,006 adults by Gallup found they believe real estate is the best long-term investment. I may be biased, so I will just celebrate the good news. Here are the top three results:
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Real estate – 37%
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Gold – 23%
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Stocks/Mutual Funds – 16%
There were a few financial planners quoted in the article that didn’t agree with the respondents’ choice of real estate. Could that be because they sell stocks and mutual funds and not homes? I’m not accusing them of anything, but this reminds me of a conference I went to a long time ago. A real estate broker asked why they are always asking people who sell stocks about real estate but never ask real estate brokers about stocks. Just a little food for thought.
One More Down, a lot More to Go
President Trump announced yesterday that the U.S. has reached a trade agreement with the United Kingdom. Here are the details of the deal from a fact sheet put out by the White House.
This is certainly welcome news, as is the planned meeting between U.S. and China officials this weekend. I’ve sure I’m speaking for everyone out there when I say I’ve had enough of “Tariffmania” and can’t wait until it’s over.
Happy Mother's Day
I would like to close today’s column by wishing all the mothers out there—especially my mother and wife—a happy Mother's Day. I would not be where I am today without my mother, who has dedicated her life to her children. She pushed my three brothers and I very hard to be successful—in fact, she still points out things I can improve on—so we could have the things in life that she and my father could never afford.
My mother had to do most of the work herself, as my father frequently worked multiple jobs to pay the bills. I always tell people that the biggest advantage I’ve had in my life was great parents. I’m glad my mother was rewarded with eight grandchildren who love her.
Thanks, mom, for always pushing me to do better for me and my family, and I hope you have a great Mother’s Day.