Working in the financial services industry requires significant trust. Unfortunately, too often that trust is, at least initially, one-sided where the client places their trust in the advisor. In the wake of the 2008-09 financial crisis’ recovery, and recent misappropriations such as Bernie Madoff’s Ponzi scheme, it is understandable for clients to find it difficult to trust their finance professionals. That trust needs to be established over time, but it must begin as a two-way street and on an appropriate foundation.
How LBW See’s It
2015 was full of notable events: American Pharaoh captured the Triple Crown, the new Star Wars movie was released, and the Federal Reserve (“Fed”) increased the federal funds rate for the first time in nine years. The Fed had been indicating an increase was imminent throughout the year as they continued to see increased productivity in the US economy. On December 17, 2015, the federal funds rate increased by a quarter of a percent from 0.25% to 0.50%. Chair Janet Yellen specified that future increases will be gradual in nature and likely be below their normalized projection for some time.