Author: James Liu, CFA. Founder and Head of Research, Clearnomics For long-term investors, facing periods of geopolitical risk is unavoidable. Headlines on regional and global conflicts can be alarming since they are unlike the typical flow of business and market news. These events are also difficult to analyze and their outcomes challenging to predict. Of course, this doesn't stop many short-term traders from talking about "buying the invasion," betting on oil prices, and trying to...
The economy is growing at a healthy pace as we approach the second anniversary of the pandemic-driven recession. Despite the many challenges facing markets, from inflation to Fed rate hikes, a growing economy provides a foundation for long run market returns. After one of the worst-performing months on record, with the NASDAQ still in correction territory, how can investors stay focused on trends rather than day-to-day market swings?
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...
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...
