No Pain, No Gain??

Another quick edition today, as the message is a cautionary one.

The rate of inflation has continued to increase recently. The Wall Street Journal quotes the nationwide inflation rate now at 7.9%. Most clients and friends with whom I speak say they feel little pain and that all they notice about inflation so far is the rising cost of gas and higher grocery store bills. How much longer will inflation continue “not to matter”? What if the US Federal Reserve gets impatient and starts raising rates more aggressively?

The jury is still out regarding how the US Fed will fight inflation today.

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Inflation Is Funny (Not)

Inflation has a funny (not “haha” funny) way of changing consumer and market behavior. We are presently seeing these changes play out in the economy and stock and bond markets. Time for the rocket photo again, which equates rapidly increasing prices with a rocket launch.*

In conversations with clients and friends in every segment – younger newly-employed, mid-career folks, parents, single people, workers at the tops of careers, those not in the workplace, heads of families and (mostly) comfortably retired folks – every one of these groups reports noticing inflation in their daily lives. This fact is unlike any time in my 35+ year professional life…and then some.

Photo by Jared Haworth, http://www.wehadtoday.com/jared

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Is This Time Different?

Originally titled, “Practical Suggestions, part 2” this edition of TGIF 2 Minutes covers a topic more related to “Is This Time Different?”

Related to a specific situation or event, most everyone has heard the bold acclamation, “This time is different!” Then, there are those who firmly believe that times are NEVER different… and that time simply repeats itself but with different nuances.

Looking at today, who is correct? The past 12 years are evidence of BOTH.

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In saving for or in retirement, it has never been more important to have a mix of a comfortable amount of safe cash plus a well-designed portfolio.

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Negative Interest Rates

Staying positive in a negative interest rate world just got a little easier. Sweden’s central bank, one of the world’s first to lower benchmark interest rates to below zero, this week raised its rate up to zero from negative 0.25%, or -0.25%.

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A negative interest rate from a bank means that instead of depositing monies and earning interest, the depositor pays interest over time. The concept has been said to signify ultra-safety of deposits thus providing “value” to the depositor.

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“What Ifs” of 2020 and Beyond

After a year – really a decade – of excellent returns in the stock market, and for 2019 in the stock AND bond markets, it makes sense to ask, “WHAT IF?” As in, what if certain events take place in the markets or economy that could spoil the last several years of positive portfolio returns? Naturally then, there would be a handful of guesses or responses to the “what if” questions.

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What if certain events take place in the markets or economy that could spoil the last several years of positive portfolio returns?

Continue reading ““What Ifs” of 2020 and Beyond”