Q3|2023 Market Commentary
- Autumn is a time of transition; the days shorten, temperatures decrease, leaves fall and crops are harvested. In the fall, plants and animals prepare for winter as some take refuge and others relocate to more temperate climates. The economy may be observing a time of transition as well. Certainly, the bond market it going through the most challenging transition ever. Even though the Federal Reserve (Fed) has paused increasing short-term rates in the near term, rates on the longer end of the yield curve are moving up fairly aggressively. This increase in rates is currently producing a third consecutive year of negative bond performance based upon the Bloomberg Aggregate Bond Index. Although there has been a long and variable lag (Fed speak), the economy might just be starting to feel the effects of higher rates.
- Download full Market Commentary
- Redefining the Retirement Plan is Axia’s guide to trends and strategies that will help employers get the most out of their retirement programs. Defined Benefit plans and Social Security have been the simple answer to retirement for the past century. Life expectancy has improved though and an added strain has been placed on plan sponsors to help their employees replace their incomes in retirement. Fortunately, employers are equipped with more tools than ever before to help their employees retire with dignity.
- Download the White Paper
The future of the Department of Labor’s Fiduciary Rule is in limbo following a memorandum released last Friday by President Trump. While a draft memo released earlier in the day delayed the implementation date by 180 days, the final memo did not contain such language. Rather, the final version of the memo directs the Department of Labor to re-examine the Rule to determine whether it may adversely affect the manner in which American can receive financial advice.
On October 27, 2016, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017. While employee deferral limits have stayed the same, other important limits have changed.
Last week’s vote by the British electorate to end its 43-year membership in the European Union seems to have taken just about everybody by surprise, but the aftermath could not have been more predictable. The uncertainty of how, exactly, Europe and Britain will manage a complex divorce over the coming decade sent global markets reeling. London’s blue chip index, the Financial Times Stock Exchange 100, lost 4.4% of its value in one day, while Germany’s DAX market lost more than 7%. The British pound sterling is getting crushed (down 14% against the yen, 10% against the dollar).