Anchor: Welcome back to KCCI. It’s 6:24 now. We’re here with Kurt Pearson from Compass Financial this morning and we are talkng about the recent stock market volatility.
Anchor: Yeah Kurt, so we got some good economic news. That seems good. And we also know that the Fed kept interest rates low. That seems good. The market doesn’t seem to be jibing with that. Why?
Kurt Pearson: No, a lot of times when we seem to be entering a transitional phase in the stock market, some times good news actually turns out to be bad because they begin to see that ok more good economic news means the Fed is probably going to raise interest rates or get concerned about inflation. And so I’m beginning to see that over the past quarter. Of course stocks were down 5-6% over the last quarter, not a good quarter, the worst quarter in four or five years. And so something to keep an eye on as we head into the 4th quarter coming up.
Anchor: And so how are consumers reacting to this? Do you think this is going to have a big impact on spending over all?
Kurt Pearson: Yeah, consumers are a little fickle because sometimes the financial headlines or their perception of the financial headlines can impact – well impacts all of our spending decisions and perception is reality. We did see consumer confidence tick just a little bit higher in September which is good. If that continues retailers could expect some really good holiday sales which could create a good stay for the market probably and everything. So we’ll see. We’ll see how that all shakes out.
Anchor: It’s an important time of the year for them and everybody as they’re wrapping up the year.
Kurt Pearson: Yeah, I mean jobs are ticking along pretty good in terms of people working. Sometimes it’s not only your perception of what’s going on in your situation, but you’re looking kind of down the street at what’s happening with our neighbors. Are their jobs secure? Are they getting up and going to work every day, bringing home the paycheck. So a lot is going on in the mind of the consumer and that’s two-thirds of our economy, so it’s very important.
Anchor: It impacts our decisions, exactly. Well, Kurt, thanks for coming in. Great tips there. If you have questions for Kurt yourself about your money, you can give him a call at Compass Financial. That number there is 327-1020.