Your Money

The Fed raised rates last week, reversing direction from its previous move. The question now is how long rates stay elevated.

The answer may be: quite a while.

Interest rates may simply settle at a higher level than investors became accustomed to after 2008. Large government deficits, an aging population, more spending on defense and infrastructure, and enormous demand for capital could keep both inflation and interest rates somewhat higher for years.

That changes both sides of the ledger. Savers can earn meaningful interest again. Bonds can provide real income. But borrowing costs more, and businesses and investments that depend heavily on cheap financing face a higher hurdle.

At PWM, we do not need to predict the next Fed move. We need portfolios built for the possibility that higher rates are not temporary, while staying diversified enough to adapt if that proves wrong.

Flash Macro: U.S. FOMC
by Henry McVey, David McNellis, Miguel Montoya

Your Life

Sometimes the simplest way to make the world feel a little smaller is to ask someone who has a book out what they’re reading.

Books are personal. They reveal interests, memories, curiosities and sometimes whole chapters of a life. A quick question to a stranger can turn into a conversation you never expected.

We spend a lot of time trying not to bother people. Every now and then, it may be worth taking the chance.

'What are you reading?’ I asked.
by Nora Krug

Complexity Simplified

That extra rinse button does a little more than it sounds like. Instead of simply rinsing clothes longer, the washer adds an entirely new rinse with fresh water, then drains and spins again.

For most normal loads, modern washers and detergents are designed to rinse clean the first time. If clothes still feel soapy, the issue may be too much detergent or an overloaded machine.

Sometimes the easiest laundry upgrade is realizing you do not need the extra cycle.

When to Use the Extra Rinse Cycle, and When You’re Just Wasting Water
by Lisa Milbrand

Trivia