FINANCIAL INSIGHTS ARCHIVES (2013 Year)
Quarterly Report: Third Quarter 2013
As the third quarter of 2013 ends, the first government shut down in 17 years begins due to the inability of Congress and the White House to agree on a budget. Regardless of political ideologies, philosophies, and stances, the United States government has been the greatest contributor to economic volatility and uncertainty. The third quarter was also marked with uncertainty regarding the Federal Reserve ending its Quantitative Easing (QE) program that involves the purchase of $45 billion in Treasury bonds and $40 billion in mortgage-backed securities per month. The Federal Open Market Committee has decided to continue the QE program for the time being, which has pushed the equity market higher. Despite economic and politic conditions, the broad US Market is positive approximately 21% for the year and approximately 6% for the third quarter.
The Federal Reserve’s QE program continues to keep interest rates historically low, even with the recent interest rate rise, which has resulted in fixed income remaining either stagnant or negative. However, the third quarter was slightly positive for most fixed income categories. It is important to remember that risk and return are related, and the amount of return achieved is indicative of the investment’s underlying risk. During volatile and underperforming times, it is important to stay the course, and not take on excess risk that could interfere with your overall investment objectives. Please contact your Petersen Hastings advisor if you have any questions or concerns.
Petersen Hastings News
We are pleased to welcome Donna Yakawich to the Petersen Hastings team. Donna joined us on October 1 as a Wealth Planner. She worked as a CPA in the area for over 19 years and received her B.A. degree in accounting from Montana State University.
We are also pleased to announce that Alexandra Webber was married to Jeffrey Umemoto on September 7, 2013.