Insightful Ideas

Drafting a succession plan now can help your business stand the test of time. As a business owner, you’ve invested so much into making your business successful – hard work, time, money, energy. It’s truly hard to imagine your business without you. But chances are there will come a day when someone else will take the reins. And a seamless succession plan, one carefully and thoughtfully devised well in advance, is essential to making sure your business enjoys continued success for generations to come.

After delivering record performance through the first six months of the year, the market did not take a breather and continued its upward trend. After delivering 31 record highs and a 15% return through June, the S&P 500 Index added a 6% return and 12 more record highs during the third quarter. Behind the strong quarterly return is a bit of data to unpack, so let’s start with September...

In episode 11 of charts that matter I discussed the recent Federal Reserve cut to interest rates and the longer-term rate outlook. The key theme was “don’t be too comfortable being comfortable in cash.” Meaning that the outlook for rates on savings accounts, certificates of deposit, and money market funds is likely lower. In my opinion, investors face a potential opportunity cost of holding excess cash as the Fed continues to lower interest rates.

As everyone settles into their post-Labor Day routines, it’s a good time for investors to reflect on markets and review their financial plans for the rest of the year. August began with the sharpest market declines in two years, but major indices rebounded and the S&P 500 finished the month near its all-time high. Inflation remains on a downward trajectory and the broader economy appears strong. So while September is beginning with additional market uncertainty, it’s important for investors to maintain perspective.