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Positive Landings
By Morgan Christen For those that have traveled in Europe, you may have taken a short flight with Ryanair. You may also have felt the Ryanair hard landing. They generally fly the Boeing 737, which I am told are a difficult plane to land. But we have all been on a 737, and they don’t always land roughly – right, Southwest? Ryanair trains their pilots for “positive landings,” which are slightly firmer than others. This is not a pilot error; in fact, they are rigorously trained. Compared to most other airlines, Ryanair’s procedure could be the safest. Their pilots fly into many airports with long and short runways and need to land in many different weather situations. So, they need to land no matter what the condition. Getting the plane to touch down efficiently, reduces runway, lessens chance of sliding in heavy rain and reduces braking. After looking up the 737 landing procedure, it states that a decent rate between 60 – 200 ft/min is desired for passenger comfort, but the aircraft can tolerate 600 ft/min. Embrace the “positive landing.” |
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By the time this newsletter is published, we should be at or just before the election. Will this week, or 2025 for that matter, be a Ryanair landing? Tough to know. Glad the political ads will be over, but where will all their pledges land? I am reminded of the sixth grade, when candidates were running for student council. At the time one candidate promised us Fridays off and Coke in the drinking fountains, and shockingly neither platform item came to fruition. If you want to review the candidates’ Tax Plan Ideas, you can read the Trump and Harris plan highlights as published by the nonpartisan Tax Foundation. |
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One thing time has taught us is only focus on what you can control. The winning candidate’s tax ideas may never happen, much in the same way I still had to go to school on Fridays in sixth grade. What we have experienced is that, over time, being invested beats staying in cash. Leaving the markets because of your displeasure with candidates or potential plans is generally not in your best investment interests. |
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The economy has been resilient, and investors may not receive the low interest rates they desire. Looking at the 10-year note, we see that it has been on the rise. That has been fueled by surprisingly strong economic data and inflation concerns. So, while the Fed did just lower rates by 50 basis points, mortgages price off of the 10-year bonds. The mortgage salad days of prior years are not in sight. In fact, sales of existing homes in the U.S. are on track for the worst year since 1995. In a normal market, if rates were high, values would go down. But we have a supply issue since the country has not produced homes like we did after the Great Financial Crisis. |
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Now that the election is behind us, it is easy to focus on potential outcomes and their impact on markets. But we stress that it is crucial to remember investment success is generally achieved over time. Just as Ryanair pilots are trained to land safely under various conditions, so should investors be prepared to navigate through different political and economic climates. In the end, the fundamentals of investing remain unchanged: stay informed, remain disciplined, and avoid making impulsive decisions based on fleeting events. By focusing on what you can control and maintaining your investment strategy, you can better land despite uncertainties We thank you for your continued support and encourage you to stay engaged with your investment plans and speak with your Spinnaker advisor to ensure your portfolio is aligned with your long-term objectives. |
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DISCLOSURES: Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio Inflation is typically defined as the change in the non-seasonally adjusted, all-items Consumer Price Index (CPI) for all urban consumers. CPI data are available from the US Bureau of Labor Statistics. Stock is the capital raised by a corporation through the issue of shares entitling holders to an ownership interest of the corporation. Treasury securities are negotiable debt issued by the United States Department of the Treasury. They are backed by the government’s full faith and credit and are exempt from state and local taxes. The indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is no guarantee of future results, and there is always the risk that an investor may lose money. Diversification neither assures a profit nor guarantees against loss in a declining market. The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the securities mentioned. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable. Opinions expressed herein are subject to change without notice. |