59 Degrees Fahrenheit is the average temperature. This might strike you as a preposterous statement while your family huddles inside the warmth of your heated home in reaction to the frightful weather outside. However, in aviation the average temperature is deemed to be exactly 59°. At 59°, the perfect air density occurs for flights. Pilots base their decisions off of this average temperature. Although 59° is considered the average temperature in aviation, it is extremely rare for a pilot to experience those conditions. At Charlotte Douglas International Airport, six days in 2018 saw an average temperature of 59°. While the average on those six days may have been 59°, the highs and lows fluctuated dramatically. This average temperature occurs on the way to either higher or lower temperatures and pilots must adapt when conditions are not perfect.
In finance, the weather last week was a perfect 59°. According to CNBC, Federal Reserve Chairman Jerome Powell essentially said on Wednesday that he considered, “the central bank’s benchmark interest rate to be near a neutral level.” (CNBC) Mr. Powell did the equivalent of a pilot relaying messages from the control tower to his passengers that, “conditions are essentially perfect.” This prompted stocks to soar in reaction to his statements. This week, the stock market tumbled amid angst of a pending trade war with China, concerns over future economic instability, and rumors of a future rise in interest rates. The perfect financial climate did not last very long.
As pilots well understand, working in 59° is uncommon. If this perfect temperature does occur, it does not linger for very long. Where the financial market turns from here cannot be known. However, at CAV_OK we can assure you that we are diligently prepared for an increase or decrease in the temperature. We are always available to provide our clients with assurance that we are attentively monitoring their portfolios. Contact us with any financial inquires you might have.