MSU WMA presents its members with a weekly news update, with the intention of providing them with information on current events impacting the market and economic conditions around the globe. Slides from the current week, as well as past presentations can be found below.

DUE TO COVID-19 CONCERNS, the update has been suspended  

Federal Reserve Announces Emergency Rate Cut

• The U.S. central bank announces an emergency rate cut for the first time between scheduled meetings since the 2008 financial crisis

• The move was announced last Tuesday, but the markets have yet to respond

• The 10-year bond yield fell below 1% even after the change was announced

• Chairmen Powell acknowledged rate cuts may not ultimately right the economy, but also indicated the U.S. growth expectations remain strong

Yield on 10-Year Treasury Dips Below 1% For First Time Ever

• After falling as low at 0.914%, the 10-year Treasury ended the week at 1.005%, down from 1.085% at the start of the week

• The quick decline of Treasury yields has surprised many traders, fueling hedging activity

• Lower bond yields mean higher bond price, fueling a rally in 2020 indicating a shift to slower, steadier growth 

• Shift also is in part to demographic shifts, and changes in consumer preference or savings rate

• The 10-year yield is watched as a “fear gauge”, with investors snatching up government bonds when they feel fear about the health of the economy

Former UAW President Charged With Conspiracy

• Federal prosecutors have accused the highest-ranking UAW official of embezzling more than $1 million, as well as covering up alleged misconduct

• Gary Jones, the former UAW President stepped down last November amid the federal corruption probe that has targeted United Auto Workers leadership

• The investigation has hurt the 84-year-old unions reputation, it has struggled with declining membership and looks to win bank the trust of rank-and-file workers

• Mr. Jones, with others, have been charged with creating fake master accounts, that were supposed to represent union serving business, such as attending conferences

• Instead, Jones and the others allegedly used accounts to pay for private villas, high end liquor, gold outings and other personal luxuries

Past Presentations 

The Wealth Management Association hosts guest speakers and other events throughout the school year with a variety of Financial Service Professionals. If you are not a student but looking for ways to participate in MSU WMA, please reach out to msuwma@gmail.com and a member of our Executive Board will be in touch. 

msuwma@gmail.com

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