Investment Advisor Jason SolomanAn inverted yield curve happens when short term rates are higher than long term rates. Tactical Investment Advisors explain what inverted yield curves can mean to an economy and what investors can do to avoid financial pitfalls. By Zoey Thompson
CORNELIUS, NC – Yield curves have historically been one of many resources available to help navigate near term economic trends. Traditionally, short term rates are lower than longer term rates, which makes for a normal yield curve (you pay more interest for longer term debt and receive more interest for a longer-term investment). Presently, short term rates are higher than long term rates meaning the yield curve is inverted. From a bank’s perspective, this can be troubling. “The bank holds your money and pays you interest based on short term rates, they make money by either lending or investing in historically safe longer-term strategies that pay more than what they are paying you. Although nothing in life is guaranteed, history has demonstrated that inverted yield curves have a strong correlation with recessions. This correlation doesn’t mean you should go sell your stocks today, but it’s certainly something that should make investors, especially retirees, think twice about when analyzing how their portfolios are allocated,” says Jason Soloman of Tactical Investment Advisors, a North Carolina-based Registered Investment Advisor.
“As a financial advisor, part of my job is to help our clients prepare for major shifts in the economy,” continues Soloman. “There are several key indicators available that help us try to understand where the economy might go, and we use them to prepare our clients and create strategies that try to protect what they have.”
Soloman feels that far too many financial planners have fallen into two camps (annuity versus non-annuity) and aren’t always looking at the big picture. Tactical Investment Advisors uses a blend of tactical fixed income, hedged and alternative equity strategies to create what they believe is a more sound investment plan for their clients. Their approach to financial management is to educate clients, ensure understanding and finally implement plans using diverse financial tactics.
“We look at the big picture at all times,” says Soloman. “What is the economy doing? What do our clients want/need long-term? What is their situation now? What new products are out there? We’re always thinking and trying to offer what we think is the best solution for each investor.”
Tactical Investment Advisors believes that another important part of their job is outreach. “Whether or not someone is ready to sit down and discuss their future concretely, they can at least be informed of what is approaching on the financial front and how they can best achieve their financial goals,” says Soloman. Aside from working with client’s all over the country, Tactical Investment Advisors also holds local community informational events, where attendees can gain guidance on topics ranging from tax strategies and investment portfolios to annuities. Soloman says that it is important for people to understand what financial products are doing for them and find solutions that will be the right fit for their individual tolerance for risk.
For more information visit: tacticalinvestmentadvisors.com call: 980.233.9770
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Company Name: Tactical Investment Advisors, LLC
Contact Person: Jason Soloman
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Phone: 980-233-9770
Country: United States
Website: http://www.tacticalinvestmentadvisors.com
