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At Manchester Capital Management, we view wealth as more than a measure of current financial health — it’s also a foundation for building enduring legacies. This month, we’re pleased to feature an article tailored for the next generation of wealth stewards, written by one of our talented Gen Z team members, Portfolio Analyst Miroslava Martinez. This article explores the fundamentals of compounding interest, one of the most powerful principles of long-term financial growth. It’s crafted to inspire younger family members to think longer term and to foster meaningful conversations among families about how small, consistent actions taken today can lead to extraordinary outcomes tomorrow. To understand compounding interest, it may be helpful to imagine hypothetical scenarios with two friends, Olivia and Liam. In these scenarios, Olivia began saving $50 a month at age 20, while Liam began saving $100 a month at age 30. When they’re both 60, who do...
04.05.2023
Following the collapse of Silicon Valley Bank and Signature Bank, banking regulators appeared on Capitol Hill last week. Fed Vice Chair for Supervision Barr and FDIC Chair Gruenberg testified before the Senate Banking and House Financial Services Committees about the recent bank failures. The Federal Deposit Insurance Corporation estimates it will cost $22.5 billion to backstop both Silicon Valley Bank and Signature Bank, guaranteeing all deposits. After the initial shock of these bank failures and the heightened sensitivity around bank holdings, the market rapidly adjusted to the new risks with the quickest monetary tightening in 44 years. Still, banks face several headwinds. First, the yield curve remains inverted—longer-term interest rates are lower than short-term rates. For example, the 10-year Treasury is yielding 3.38%, while the Fed Funds rate is 5%. This inversion is the largest in 42 years. It is generally viewed as a bearish signal for the economy,...
