Wealth advisers have one word of advice for clients who worry about the potential impact of the Federal Reserve’s first interest-rate increase in nine years: Relax.
Financial pros have been counseling clients that returns on stocks, bonds and other investments aren’t necessarily destined to suffer because of a modest Fed hike.
Investment returns hinge on many factors beyond a Fed rate increase — especially because the Fed stressed that its pace of increases will be gradual and that rates will likely stay historically low in the near future. And rates on mortgages and other loans likely won’t jump right away.
U.S. rate hike ends wait but not uncertainty
TOKYO >> The Federal Reserve’s rate hike was welcomed in Asia as a sign of strength in the U.S., one of the region’s biggest export markets. But it could complicate Chinese efforts to avoid a sharper economic slowdown and keep the yuan steady.
The U.S. central bank Wednesday raised the Federal Funds Rate by a quarter percentage point, the first such increase in nearly a decade. The decision ended a long period of uncertainty about when the Fed would begin winding down the easy money deployed to help heal the economic damage of the 2008 financial crisis. Asian stocks rose Thursday, and some currencies weakened moderately against the U.S. dollar. Investors welcomed the Fed’s signal that interest rate increases will be gradual.
Fewer Americans file for unemployment
WASHINGTON >> Fewer Americans applied for unemployment claims last week, another sign of strength in the job market. Weekly applications for unemployment benefits fell 11,000 last week to a seasonally adjusted 271,000, the Labor Department said Thursday. The less volatile four-week average was essentially unchanged at 271,000. The numbers show that most American workers are enjoying job security.
China Southern Airlines orders 110 jets
HONG KONG >> China’s biggest airline said Thursday it’s buying more than a hundred Boeing 737 jets in a deal worth about $10 billion that comes just months after the U.S. plane maker announced plans to build a Chinese finishing plant for the aircraft type.
China Southern Airlines is buying 30 Boeing 737 Next Generation jets and 50 737 Max aircraft, the company said in a statement to the Hong Kong stock exchange. Its Xiamen Airlines unit is buying 30 of Boeing’s 737 Max jets.
Cerberus taking a majority stake in Avon
NEW YORK >> Private investment firm Cerberus Capital Management is taking a majority stake in Avon’s North American division. The companies said that they believe the partnership will help to improve Avon’s performance and boost shareholder value. Cerberus will get an 80.1 percent interest in Avon North America in exchange for a $170 million equity investment. The North American unit will be separated from Avon Products Inc. into a privately held company that will include the U.S., Canada and Puerto Rico. It will be managed by New York-based Cerberus.
ON THE MOVE
RevoluSun recently hired Beverly Au as a customer service, operations support representative. Prior to joining RevoluSun, Au served as an assistant buyer at Pint Size Hawaii and abuyer at Pacific Historic Parks. She also has 15 years of merchandising and inventory management experience.
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Kahala Nui, a senior living community for approximately 450 seniors, has donated $144,845 to Aloha United Way in support of organizations serving seniors in their community. Thefunds were distributed among the following: Catholic Charities Hawaii received $36,070, in support of its housing senior assistance program; Project Dana received $31,515, forservices supporting frail seniors; the Alzheimer’s Association received $20,090; Kokua Kalihi Valley got $24,095, for senior services and a public housing program; and Hawaii Mealson Wheels got $33,075, for home delivery meal service to frail seniors.
