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May 2022

Here We Go Again!

  Well, here we go again. Morningstar market index, it’s down a year to date -17.7%. Are we in yet another bear market? Hello, my name’s Paul Carrol, CEO and founder of Avion Wealth, an elite wealth management firm here in South Texas. With the S&P 500 down over 16% and other indices looking even worse, what does this mean? Well, there’s a lot of pressure on all markets. Interest rate hikes are necessary to fight inflation. Inflation is at 8%, maybe higher. We have what’s called an inverted yield curve. It’s a strong leading indicator of recession. There’s a war in the Ukraine and it’s having severe impacts on the energy markets, which is further feeding inflation. And then we have corona lockdowns in China, which may not seem to be relevant, but they’re having a significant impact on supply chains over and above the regular transit challenges that…

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With The Fed About To Raise Rates, Where Do We Go From Here?

  With the Fed about to raise interest rates, where do we go from here? Hi, my name’s Paul Carroll. I’m the CEO and founder of Avion Wealth, an elite wealth management firm here in South Texas. Last week saw significant volatility in the equity markets and the Fed has told us this week to expect up to a 0.5% bump in interest rates. Are we seeing a correction? GDP contracted last quarter by 1.4%. The Fed’s quantitative easing is coming to a slow end, and we now have increased interest rates baked into the cake. Could any or all of this drive us into a recession? Higher interest rates, inflation, recession. This begins to sound like the stagflation of the 1970s. If so, it’s going to be a paired down version. That was pretty awful. What we have today is quite different. We have supply and labor shortages. This…

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