September brought mixed results for the markets. The S&P 500 declined approximately 0.5%, while the technology-heavy Nasdaq gained 1.9%. The economy remained resilient, but inflation stayed above the Federal Reserve’s target, prompting them to raise short-term rates by 0.25% mid month.

The bond market experienced pressure again as the 10-year Treasury yield climbed above 5.25%, its highest level in more than two decades. Rising yields weighed on existing bond prices, but they also created considerably better income opportunities.

For many of our clients, recently we have taken some risk off the table and added to some bonds and CDs.  While higher rates can slow growth and certainly not good for current bond prices, we feel it is a good entry point for stable income with many interest paying vehicles well over 5%.

As always, reach out to your advisor with any questions, concerns, updates to your financial life; and thank you for your trust in Capstone.

*SP599 and Nasdaq can not be invested in directly