To Our Family of Clients, Last year felt like it would never end. It wasn’t as bad as 2020, but we still felt the weight of the COVID-19 pandemic. In contrast, 2022 felt like a blur. This was ironic because Berkshire Money Management grew fast in 2021, but we made the strategic decision in 2022 to slow down and absorb that growth. We used the year to strengthen partnerships for the company (bookkeeping, compliance, trading) and clients (college planning, tax avoidance, risk management). And, of course, we took the year to focus on continuing education for familiar faces and training…
Insights & Advice
Allen Harris
Layoffs ahead? The Fed’s efforts to beat inflation, October 2022
For the Federal Reserve, slowing inflation may mean slashing job growth. Will we trade high inflation for high unemployment? Berkshire Money Management CEO and Founder Allen Harris explores how employment is impacted by interest rates, and why the Federal Reserve might want you to lose your job. TRANSCRIPT: The Federal Reserve is an independent government body. So they’re not supposed to listen to the White House or Congress or House of Representatives. They’re supposed to do whatever they need to, to fulfill their two goals, or mandates. One is stable growth (employment) and the other is to keep…
Recession or Not? Analysis by Allen Harris, October 2022
Is the U.S. economy currently in a recession? The National Bureau of Economic Research isn’t officially calling this a recession, but after two consecutive quarters of declining GDP, Berkshire Money Management Founder and CEO Allen Harris is convinced that what we’ve been experiencing in 2022 is, in fact, a recession. And as the Federal Reserve’s continued efforts to combat inflation begin to create “deep, deep pain,” the recession will only grow in 2023. TRANSCRIPT: Well there’s opinions, there’s facts, there’s data, and there’s anecdotes. So a fact, and I’m not going to get all wonky on this, promise,…
Stock Market vs. Fed Rate Hikes in Volatile Market | Investor Pains
On June 15, 2022, the Federal Reserve’s Open Market Committee (FOMC) raised the federal funds rate to 1.65 percent. They vowed to “undertake open market operations as necessary to maintain the federal funds rate in a target range of 1.5-to-1.75 percent.” Let’s call it 1.75 percent for today’s discussion, which is in line with the usual commentary. According to Bloomberg data, the bond market is pricing in that short-term interest rates will hit 3.6 percent. How might short-term interest rates reach 3.6%? Let’s plot how the Fed could drive short-term interest rates to 3.6 percent. As of June 15, 2022,…