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Reading the Market: Warren Buffet once said, “The most important quality for an investor is temperament, not intellect.” We are firm believers of this at Compass Ion, and it is especially important with the current market volatility. Last week saw some significant dips in the market. The day-to-day ups and downs can affect us as we consider our investments because those investments are often tied to our goals. Remember, we are available to chat, strategize and help. Our client service team remains available on the front lines, and our advisors are eager to help steady the ship through this volatile market. In April, the U.S. job economy added 428,000 jobs. The unemployment rate remained at 3.6%, marking the 12th straight month of job growth above 400,000. That said, with the market’s significant downturn at the end of last week, much work is left to be done. We are eager to work with you in whatever ways are helpful to you. Reach out with any questions.

A View at Retirement: In the midst of market volatility, the retirement situation in America is fairly dismal, according to Forbes. According to a recent survey, more than 50% of U.S. workers say they are behind on their retirement savings. At least one in every three people report they do not even have a retirement account. To make matters worse, 51% of Americans claim they have taken early withdrawals from their retirement accounts. This chart from Bankrate shows it well:

The pressures of the COVID-19 pandemic combined with the market volatility create a challenging decision-making platform when it comes to retirement. Our advisors want to help you with your retirement planning. Don’t hesitate to reach out or recommend our firm to friends who might be helped by our services.

Business Briefing

  • Interest Rate Hike: On Wednesday, the Federal Reserve announced a rare but expected half-percentage-point interest rate hike as part of its intensifying effort to fight the highest inflation in four decades. The central bank also revealed that beginning in June, it plans to start reducing the $9 trillion asset portfolio it piled up as it was pumping money into the economy to boost recovery from the pandemic crisis. (The Wall Street Journal)
  • Mortgage Rates Rise: The average U.S. 30-year, fixed-rate mortgage rose to 5.27 percent last week, the highest level since 2009, mortgage buyer Freddie Mac reported. The increase, from 5.1 percent last week, came as the Federal Reserve was preparing for its Wednesday decision to hike its benchmark short-term interest rate by a half percentage point as part of its effort to dial back its economic stimulus programs to fight high inflation. (The Associated Press)
  • Minimum Wage Increase: On Tuesday, Hawaii’s lawmakers passed a bill to raise the state minimum to $18/hour by 2028, up from the current rate of $10.10. Proponents say families struggling to pay for rising food and housing costs need the increase. Some businesses say they can’t pay that much and would have to cut staff or even close up shop. The minimum wage would be the highest out of the 50 states and the District of Columbia, although some states have automatic cost-of-living increases, so inflation could increase their rates by 2028. (The Associated Press)

Monday Motivation: In case you need another reason to get moving, listen to this story. Mildred Wilson, 83, recently became the oldest person to finish the famous 5k Tough Mudder race. And it was her third one. She raised money to drill a fresh water well in a rural African village in this event. In 2021, she completed her second race, dedicating it to her late husband, who was there to see her complete her first in 2019. Mildred says, “I will get muddy so others can drink clean water!”