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Long-term auto loans are known to be riskier, so why are they increasing in popularity when it comes to auto lending? In the auto industry, it’s not uncommon for consumers to have negative equity in their vehicle. Consumers want the latest and greatest when it comes to savvy technology and features so they upgrade their vehicles, and with that comes a cost. In order to keep costs down, many consumers are opting for longer terms in order to keep their payments affordable. But, does this set them up for financial failure?

As we reach the end of a stellar Q1 earnings season, the US equity markets continue to trend sideways in search of the spark that will reignite the “animal spirits.” More than 400 of the S&P 500 constituents have reported Q1 results thus far, with 75% delivering upside surprises on the top line and 81.5% beating on the bottom line.

The markets seemed to heave a sigh of relief last week over the April labor report, which showed weaker than expected average hourly earnings (AHE) growth. The Wall Street consensus was 2.7% year-over-year (YoY) growth, and the print came in at 2.6%. However, the markets shouldn’t feel relieved for too long.

First things, first. We've all forgotten at some point in our lives where we've parked the car. As we get older, it doesn't get any easier, unfortunately. Unlike those 'dude, where's my car' moments, your borrowers may purposefully not want to be found as they skip out on their loan by missing payments.

Every profession has its own version of a very bad time, a time where there really is no way to win, a time when the best result is not losing too badly. For bond traders, the flat yield curve is such a time. A wise man once said, “You never notice oxygen until it’s not there.” A normal, positively sloped yield curve delivers life-sustaining oxygen to a bond trader in the form of “carry.” When the yield curve is positively sloped, a five- or ten-year bond funded by one-month money, interest earned on the bond position is greater than interest paid to fund the position. That is called “positive carry.”

Offering a retirement plan at your business shows you're committed to helping your employees build funds for a comfortable and worry-free retirement. While that is an important first step, as a retirement plan sponsor, you're obligated to go farther and act in employees' best interests when making any decisions regarding the plan and its funds.

April sure has been an interesting month, and we are only midway through it! In just the last two weeks, the U.S. has seriously sparred with its greatest economic competitor (at least by size of economies), China, and its greatest military competitor, Russia. The President of the United States had the offices of his private attorney raided by the FBI, perhaps pushing the President closer to a constitutional showdown over the fate of Special Counsel Robert Mueller.

Last week, another move toward a global trade war was initiated, as President Trump spoke of slapping an additional $100 billion in unspecified tariffs on China. The Chinese responded that they will have a very specific list of tariffs on U.S. goods, totaling $100 billion in retaliation.

SWBC is thrilled to announce the launch of our newly redesigned website! After more than a year of strategic development, an upgraded infrastructure, hard work, teamwork, and commitment, our much improved website went live on April 1, 2018.

2018 is shaping up to be a slower year for auto sales and lending after two years of record-setting sales. Interest rates are increasing, and while those increases aren’t jaw-dropping, they’re likely to stop some auto buyers and borrowers from replacing their vehicles.