Author: James Liu, CFA. Founder and Head of Research, Clearnomics Partisan drama is once again center stage as the debt ceiling deadline approaches. Although this has become a regular occurrence in Washington, many investors are still understandably nervous. While it's unclear how this will play out over the coming weeks, especially as ongoing debates over $4.5 trillion in new spending proposals continue, the fortunate news is that financial markets are taking these events in stride...
A 6.1% Bump in Social Security? COLA and Social Security. The news keeps getting better for Social Security recipients. It's now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant increase since 1983.1,2 It’s all about inflation. Social Security cost of living adjustments (COLA) are based on the consumer price index, which rose 5.4% in June — its largest 12-month increase...
Author: James Liu, CFA. Founder and Head of Research, Clearnomics Markets are increasingly concerned about tighter monetary policy by the Fed and its impact on valuations, interest rates and more. Recent FOMC meeting minutes confirmed that the Fed could slow its balance sheet expansion within the next few months and this week's virtual Jackson Hole Economic Symposium could provide more clarity around future rate hikes. How can long-term investors navigate the policy changes and economic...
Monthly Economic Update Presented by Peck Financial Advisors August 2021 U.S. Markets Last month, the stock market posted a solid gain, overcoming investors’ fears of higher inflation and an increase in COVID-19 cases. The Dow Jones Industrial Average picked up 1.25 percent, while the Standard & Poor’s 500 Index gained 2.27 percent. The Nasdaq lagged, climbing 1.16 percent.1 A Wall of Worry Climbing a wall of worry, investors weathered a choppy month as markets digested...
Author: James Liu, CFA. Founder and Head of Research, Clearnomics As the economy shifts from recovery to expansion, one challenge for investors continues to be the high level of valuations. In the long run, valuations are investors' best North Star since they don't just tell us how much something costs, but also what we get for our money. They are correlated with portfolio returns for this reason - i.e., buying when the market is cheap...
Valerie Peck |
The Quiet Fall in Bond Yields What’s behind the quiet fall in bond yields? Provided by Peck Financial Advisors With all the attention given to inflation, stock prices, and job reports, it’s been easy to overlook the remarkable move in the bond market during the past few months. The yield on the 10-year treasury closed at 1.37% on Friday, July 9, down from its 2021 high of 1.74% in late March.1 What’s behind the quiet...
Monthly Economic Update Presented by Peck Financial Advisors July 2021 U.S. Markets Stocks moved higher last month as investors looked past accelerating inflation and the Fed’s pivot on monetary policy. The Dow Jones Industrial Average slipped 0.07 percent, but the Standard & Poor’s 500 Index rose 2.22 percent. The Nasdaq Composite led, gaining 5.49 percent.1 Inflation Report The May Consumer Price Index came in above expectations. Prices increased by 5 percent for the year-over-year period—the...
Post-Covid Economy and Market Volatility by Valerie L Peck, CFP® The stock market has rallied significantly over the past year. Despite reaching many new all-time highs, uncertainty remains high due to the recovery and rising interest rates. Stock market volatility is a normal and unavoidable part of investing. The reason we as investors are rewarded over time is because we are willing to stomach risk, especially when it is least expected. For long-term investors, it...
Valerie Peck |
Fed Funds and Bond Interest Rates by Valerie L. Peck, CFP® The Fed has kept interest rates at the zero lower bound since the pandemic began. They announced this week that they expect interest rates to begin to rise again sometime in 2023. There are reasons for us to be encouraged as well as cautious in these transitioning times. Rising interest rates result in lower bond values. But remember that rising interest rates also mean...
Valerie Peck |
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Monthly Economic Update Presented by Peck Financial Advisors June 2021 U.S. Markets Stocks traded in a narrow range in May, with technology and other high-valuation companies under selling pressure. The Dow Jones Industrial Average gained 1.93 percent while the Standard & Poor’s 500 Index rose 0.55% percent. The Nasdaq Composite, home for many technology and high-growth companies, dropped 1.53 percent.1 Solid Earnings Stock prices moved erratically throughout May as investors digested more solid corporate earnings...
Monthly Economic Update Presented by Peck Financial Advisors May 2021 U.S. Markets A succession of robust economic reports and a healthy start to the corporate earnings season helped spark an April rally on Wall Street. The Dow Jones Industrial Average gained 2.71 percent while the Standard & Poor’s (S&P) 500 Index picked up 5.24 percent. The Nasdaq Composite led, climbing 5.40 percent.1 Signs of Recovery Stocks raced ahead in the first half of the month...