2024 Q2 Client Newsletter

Let’s take a moment to talk about inflation.

As of May 2024, the inflation rate stands at a modest 3.3% which is pretty ‘average’ when it comes to the long-run. Seeing this rate feels like a surprise to me as I, like you, are still observing prices that seem higher than normal. The reality is that we did experience significant inflation coming out of the pandemic, and while we’re not going to see our ‘old’ prices again, the inflation we’re experiencing today is at a relatively normal level.

The disconnect comes with our perception. In the two decades preceding the Coronavirus Pandemic we enjoyed, and became accustomed to, historically low inflation rates alongside historically low interest rates.  Both inflation and interest rates have been higher post-pandemic than at any point in the last 20 years, and while they remain close to our long-term historical averages our perception is that we’re feeling a pinch. Additionally, our current perception is further skewed because some of the items we purchase the most, such as groceries, continue to experience higher levels of inflation while other products that we purchase less frequently, such as electronics, furniture, and cars, are not.

Inflation isn’t all doom and gloom as it can nudge businesses to innovate and can also encourage corporate spending, which in turn helps those same businesses to earn more and, ultimately, generate greater return for shareholders. Inflation is just one one of many risks PWM ‘manages’ by keeping your portfolio invested in a global mix of stocks and bonds: keeping cash in the bank risks losing long-term purchasing power to inflation.

I don’t know what the future holds but for now, the inflation ‘dragon’ of the last few years, while far from asleep, does seem to have been tamed. As always, if you’re feeling angsty about the status of our economy, give me a call so we can talk about it.

Our Team Has Grown

If you haven’t already had the chance to work with Christopher Lee, I hope you soon will. Chris joined the firm a few months ago as an associate financial planner. He graduated from the University of Georgia with a MS in Financial Planning before taking his own trip around the world. He’s already become a great asset to our team, and I look forward to further integrating him into the financial planning industry.

Summer Plans

Sadly, the Tobias family isn’t studying abroad this summer. Instead, 2024 is the summer of camps.  I recently accompanied my daughters to a week of BSA scout camp, where I ‘passed the test’ to become an official Assistant Scoutmaster. Then the entire family traveled to our dear friends’ home in Annapolis for the kids to have a full week of sailing camp.  Next in store is two weeks of overnight camp in Colorado (for the kids!) where I’ll take some time off to summit a handful of 14’ers (mountains 14,000 feet above sea level) before attempting my annual BIG hike, which will also be in Colorado this summer.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2024 Q2 Passport Wealth Management client newsletter attached to quarterly statements from July 2024. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. 

Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful.