I have written about the inverted yield curve in the past and find the reference to that in this coverage of the latest interest rate cut to be of interest. Hope you do as well!
Click here to view the complete article.
Barb CulverRead More
Since the Equifax breach was massive, I wanted to share the latest information with you.
If you have spent time or money since September 2017 dealing with the breach, you can request reimbursement for up to 20 hours of time spent reclaiming your identity. The hourly rate for reimbursement is $25.
If you incurred extra accounting fees, you may ask for up to $20,000 in restitution.
Of course, you will need to document damages and time invested in resolving this issue.
The other options involve credit monitoring. One choice is to a reimbursement of up to $125 per person. (Beware the actual amount could be much less). The second is to ask for 10 years of free monitoring. Since these breaches seem to be getting worse rather than better, you may want to consider the long-term credit monitoring option.
See this article link for complete details and contact information.
Barb CulverRead More
Indeed, we seem to be living in interesting times! I know I have spoken with many of you in the past regarding the yield curve and past lessons we have learned from it. I found the attached article written by Sonal Desai, Ph.D., Chief Investment Officer of Franklin Templeton Fixed Income to be of particular interest. I hope you find it to be both timely and the value as well.
Barb CulverRead More
Through April 30, the S&P 500 index had earned 18.3%. This is the best stretch for the first four months of the year since 1987! Interestingly, most of us will not remember 1987 for the impressive performance of the S&P 500 in January. Rather, we tend to remember the 20.5% drop on October 19 – which remains the biggest one-day decline in the history of the S&P 500 index. Even with the decline, the S&P 500 ended up 5% for the year in 1987.
Looking back even further, Ryan Dietrich of LPL Financial told CNBC that, until now, there have been only four years since World War II when the market earned 15% or more in the first four months. Specifically, those years were 1967, 1975, 1983 and 1987. However, please note that the months between May and October have been really volatile in the same years.Read More
There has been a flurry of activity regarding our trade policy with China and China’s reaction to it. Jeff Herzog, Ph.D. and Portfolio Manager at Lord Abbett, published this analysis on May 17, 2019. I thought it was very insightful and hope you do as well!
The title of his article is “Tariffs, Tweets, Trade and Trump: An Update.”
The U.S. administration is clearly weighing market reaction to its current actions, but at the same time investors are trying to absorb how far the White House will press China. While the economic impact depends on the ebb and flow of negotiations, beyond the tweets that batter markets we think the main issues are as follows:Read More
While there may be fewer incentives than in 2018, here are some tips for 2019:
August and September are good months to shop as 2019 models are cleared from lots to make room for the 2020’s. The same is true for year-end as auto dealers want to reduce taxable inventory. Specifically consider the day after Christmas and New Year’s Eve.
(Source: Yahoo Answers 5-5-2019)
While SUV’s and pickup trucks are in highest demand, they are also in high supply.
The average price of a new car in the U.S. has consistently climbed over the years, but look at what has happened to trucks: JD Power shows truck buyers pay 61% more for a new pickup compared to the cost 10 years ago. The average price of a new car rose 28% in the past decade to $32,500. The average cost of a new truck is closer to $44,000!
While I will be sending several opinions on consecutive days, I wanted to start with this one from Giolio Martini, Partner, Director of Strategic Asset Allocation at Lord Abbett.
Will Trade Trauma Trip Up U.S. Growth?
In our view, the effects of recently imposed tariffs likely will not have a significant impact on the current U.S. Gross Domestic Product (GDP) trajectory.Read More
The information in this email is not to be taken as a recommendation to invest in any certain way. Ginger Szala wrote “6 Economic Predictions for Next 5 Years: Northern Trust”, Sept. 10, 2018 as a result of interviewing Bob Browne the Chief Investment Officer of Northern Trust.)
Northern Trust has been shifting assets back in to the U.S. because “they have more confidence in the short-term U.S. story than in the international one.” Browne thinks the U.S. equities will return about 6.5% total return in the short- term and expect equities to return closer to 6% over the next 5 years. He predicts high-yield bonds at 6.3% total return in the short-term and 4.9% over the next five years.
In contrast, he projects 8.3% total return for emerging markets over the next 5 years.
He sees no risk of recession in the next 5 years and expects only one more interest rate increase from the Fed in 2018 and one in 2019.
While this obviously just represents the opinion of one institution, I thought you might be interested in seeing the total return predictions.
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
One of the special skills of the Resonate team is working intergenerationally. We are grateful to be working with three generations of many of our clients and – in some cases – with the fourth generation as well.
Here are some of the insights we have learned from our client families: