Author: James Liu, CFA. Founder and Head of Research, Clearnomics Inflation continues to be a hot topic for investors as markets adapt to worsening supply chain disruptions. However, not all inflation is the same and today's environment requires a clear understanding of what's driving prices higher. More importantly, this can affect portfolios and financial plans in different ways. How should investors react to today's inflation rates with the right perspective? All investors understand that the...
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...
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...
