After a brief hiatus, we return following a week with few economic and market reports. That is not to say that the week was without news, most notably when Fed Chair Jerome Powell spoke Thursday and spooked the markets with the comment that the Fed is a long way from done in its fight against inflation.
Read MoreLosing a loved one is an incredibly difficult experience. During the grieving process, it can be challenging to know what steps to take regarding their important documents. While it may be tempting to dispose of everything right away, it's important to hold onto certain documents for a specific period of time.
Read MoreInflation is the driving force behind the rate increases that the Federal Reserve has presented since March 2022. Inflation peaked in summer 2022, and it has been cut by more than half since the Fed raised rates from the range of 0.0%-0.25% to the range of 5.25%-5.5%, a more than 20-fold increase.
Read MoreThe Federal Reserve has increased its overnight target rate 5.25% since March 2022. Rate increases this fast and large would, by most thinking, quickly slow the economy.
Read MoreOctober has the reputation as a terror for the capital markets. October 1929 is seen as the start of the bear market of the Great Depression. October 1987 holds the record for the largest single day plunge when the market fell more than 22%. Leading into October this year, there were reasons to believe we could see a return of the October Terrors.
Read MoreLast week’s economic reports were highlighted by Friday’s personal consumption expenditures report. This report showed consumer spending remained strong, but inflation, excluding food and energy, was below expectations. Also released last week was the final estimate for second quarter gross domestic product growth and initial jobless claims, both below expectations.
Read MoreEconomic forecasts are known to be wrong most of the time. Even the best forecasters suffer through periods of incorrect predictions. There are many reasons why this is the case. Sometimes the forecaster does not include needed data, a surprise event, either positive or negative, could move the economy away from the expected path and overconfidence of the forecaster.
Read MoreEconomic reports that were published last week gave us a glimpse of the health of the economy and maybe an indication of what the Fed will do at their meeting this week. Both consumer and business reports suggest the economy is performing better than expected. On the other hand, inflation exceeded expectations, which is not a positive for the outlook. In total, though, the reports painted an optimistic picture of the economy.
Read MoreDuring my journey to becoming a trust officer, I spent some of my time volunteering for local organizations. One of my favorites is still the Peninsula Park Rose Garden in North Portland. As the summer roses bloom and fade, it’s time to think about what we can do to ease our financial and philanthropic planning for the rest of the year.
Read MoreOn August 1, Fitch Ratings downgraded the U.S.’s long-term default rating to AA+ from AAA. Fitch cited an “expected deterioration over the next three years”, a high and growing debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades.
Read MoreWe listen to, read over and over, and see that when interest rates increase, the economy slows down, albeit with a lag. The above graph shows this is frequently true. The lag happens because it takes about 9-months for the rate changes to take full effect in the economy. The Fed started increasing rates in March 2022, quickly followed by predictions of a recession by the end of 2022.
Read MoreThe U.S. economy proved to be resilient through much of the first quarter of 2023. From March 2022 through March 2023, the Fed increased rates by a multiple of 19 from a range of 0.0%-0.25% to the range of 4.5%-4.75%.
Read MoreThe biggest contrast between a Trust account and a brokerage account occurs in the event of a default by the firm. When a Trust bank is in default, client accounts are available to the account owner typically within 24 hours of entering receivership by the FDIC, following bankruptcy.
Read MoreCarrie H. Nobles, CTFA, Director of Trust Services, is retiring after a well-earned career. Carrie dedicated 15 years at Allen Trust Company and was a foundational team player that has continued to inspire, teach, and grow the company. Carrie has shared her story of the experiences that have led to where she is today.
Read MorePORTLAND, Ore. — Max Williams joined the Allen Trust Company Board of Directors on March 7, 2023. Max’s experience in the law, government, and philanthropy brings new and exciting expertise to the Allen Trust Company board.
Read MoreThe effect of bank runs will typically play out over weeks and months and the expectation is the deposit run on Silicon Valley and Signature Banks will be no different. The collapse of these two banks does not equal that of the Financial Crisis of 2007-2009, but the underlying reason is the same: an evaporation of confidence in first, the banks themselves and, second, in the banking system overall.
Read MoreOver the years we have emphasized Allen Trust Company's status as a locally-owned independent trust company, a structure whose virtues were perhaps underappreciated by some until now. In a time when the giants of the financial world are falling hard and fast, we wanted to reassure you of our firm's inherent stability and soundness. The following describes guidelines adopted by the State of Oregon for regulation of trust companies and the protections which that framework ensures:
Read MoreFriday morning, the FDIC took control of Silicon Valley Bank (SVB) following a massive outflow of deposits. SVB’s customers were largely start-up tech companies with a high need for cash to fund operations. These companies held deposits with SVB but the high need for cash required an outflow of deposits from SVB. To meet the deposit outflows, SVB was forced to sell bonds from their securities portfolio and within the last few weeks, SVB sold $21 billion of Treasuries with an attached loss of $1.8 billion.
Read MoreHave you ever tried to bring a tree to life, from seed until maturity? Constant and thoughtful care is essential to the growth and wellbeing of the tree. You are required to start with the basics by establishing the best sunlight, soil, and water conditions for the seed to sprout into a seedling and continue its growth.
Read MoreYesterday was Valentine's Day. This is typically a day when we receive notes of affection, and some may receive flowers and chocolates. The government though, gifted us inflation data and it was not warm and fuzzy as the day would demand.
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