The markets are enough to give anyone anxiety. Might you need a financial therapist? Might you be a good financial therapist and make it a career?
**Where Money Meets Feelings: Financial Therapy Finds Its Footing**
**Planners weren’t equipped to address the emotional roots of how clients dealt with money. Therapists couldn’t guide finances. Now, there’s a bridge.**
**By Charlotte Cowles, The New York Times, Aug. 13, 2022**
**During the 2008 financial crisis, a handful of financial and mental health professionals banded together to form the Financial Therapy Association, which aimed to spread awareness of the connections between psychology and personal finance....**
**In 2019, the Financial Therapy Association introduced an accreditation program for both financial and mental health professionals to become certified in financial therapy. The coursework, which takes three to six months to complete remotely, covers financial topics (like estate planning and budgeting) as well as therapeutic techniques (such as pinpointing behaviors and attitudes that may hinder financial progress). To earn the designation, students must pass an exam and promise to adhere to a code of ethics, which includes a fiduciary standard and a ban on selling or earning commission from financial products. ...**
**Like traditional therapy and financial planning, financial therapy can vary widely in cost. Practitioners charge from $100 to $800 per session, depending on their fee structure and services. Financial advisers who are certified in financial therapy should be clear about the boundaries of their mental health training, Dr. McCoy said; the same goes for mental health workers and their financial knowledge....** [end quote]
This week’s Control Panel is not anxiety-producing. It’s similar to last week’s except more so.
The markets are singing “Happy Days are Here Again.” The Fear & Greed Index has crept from Neutral into Greed. The trade is risk-on as stocks and junk bonds are rising relative to Treasuries. The USD has gently dropped until it is at the rising 50 day MA.
The Treasury yield curve is rising along its entire duration. It’s inverted in places. If the Fed raises the fed funds rate as expected it will be fully inverted by the end of 2022. The 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity is predicting a recession within 6 months to a year. The 10-Year Treasury Constant Maturity Minus 3-Month Treasury Constant Maturity (T10Y3M) hasn’t gone negative yet but it will if the Fed keeps raising as expected.
The METAR for next week is sunny. The markets are celebrating one month with zero CPI inflation as if this means that the Fed will ignore all the other inflationary signs and change its mind about raising interest rates.