Global Economics Intelligence executive summary, October 2022
Growth rebounds in the United States The world’s two largest economies exceeded growth expectations in the third quarter of the year. The US economy rebounded to a GDP growth rate of 1.8% year over year, after two quarters of contraction. The US growth was supported largely by consumption and exports.
Nov 10, 2022·19 min
Investors have been better off staying fully invested
The best-performing portfolio over the past 120-year period stayed fully invested throughout both Democratic and Republican administrations. Those who invested exclusively during single-party rule by their preferred party or during divided government fared much worse. The more time investors dedicated to the markets, the better, and the less time they dedicated to politics the better.
Nov 7, 2022·1 min
Politicians don’t radically re-engineer the economy or dramatically alter economic growth
Investors are concerned that a political party might drastically re-engineer the economy. The economy has been remarkably consistent in terms of consumption, business investment, and government spending as a percentage of gross domestic product (GDP) across multiple governments. Economic activity, as measured by the median annualized quarterly percent change in US GDP, has been very similar under both single party and divided government rule.
Nov 4, 2022·1 min
Monetary policy matters more
Monetary policy has historically impacted Presidents in a positive or negative manner. Presidents Clinton and Obama (and for a while Bush II) benefited from prolonged periods of benign inflation and easy monetary policy. Strong market returns under President Obama occurred during single-party Democratic rule, as well as during a divided government.
Nov 3, 2022·1 min
Market returns tend to be muted until late in midterm years
Jul 11, 2022·1 min
MISSING JUST A FEW OF THE MARKET'S BEST DAYS CAN HURt INVESTMENT RETURNS.
Jun 30, 2022·1 min
Market declines are part of investing
Despite the fact that stocks have moved steadily higher over long periods of time, history tells us that bear markets (an extended 20% or more decline) and other difficult patches aren't permanent. The good news is that corrections (a 10% or more drop), bear markets (extended periods of 20% or more declines), and other difficult patches haven't lasted forever.
Jun 21, 2022·1 min
Shrinkflation: The Silent Economic Threat That's Affecting Your Everyday Life
Shrinkflation: The Silent Economic Threat That's Affecting Your Everyday Life When the price of anything rises, that means the value of that item has decreased. Shrinking prices are just that: the price of something is decreasing. These two phenomena can be difficult to tell apart, but they are very much connected. Shrinking prices are the result of inflation. The price of something is rising so it makes sense that you would pay more for it over time. So, how can you tell that you’re seeing the effects of shrinking prices instead of just seeing a natural rise in prices? Here are some of the most common signs.
Apr 19, 2022·6 min
Why Invest in International?
Since 2007 international stocks have lagged the returns of U.S. stocks. So, are global stocks worth investing in if they have not generated superior returns to U.S. stocks in recent years? After all, by investing in international U.S. stocks, wouldn't I get enough exposure to global economies? To answer these questions, we must discuss the potential gains from diversification.
Apr 6, 2022·3 min
The Costs of Eating Out
In 2019, during the COVID-19 pandemic, I primarily stayed at home to avoid sickness. As a result, I was consuming less food because I just ate what was already in the refrigerator rather than going out to lunch. That year, my doctor said that I was one of her few patients who lost weight during the pandemic. Fast forward to 2022, when I resumed work and started going out for lunch again. Two weeks after returning to the office, my doctor told me that I had gained 8 pounds--in two weeks! Not only did weight gain reoccur, but I was spending $400 on lunch a month! And every time I went to my favorite diner, I would see signs that read, “If you really liked us, you would eat more.” Obviously, I complied!
Mar 31, 2022·7 min
Inflation Dominates Americans' Economic Concerns in March
STORY HIGHLIGHTS 17% name inflation as nation's most important problem; 4% cite gas prices Mentions of the coronavirus as top problem are lowest of the pandemic Six in 10 worry a great deal about inflation, leading most other issues
Mar 29, 2022·5 min
Tennessee is one of three states being hit hardest by elevated gas prices. Why and what can you do to save money on gas?
I usually drive my car in sports mode but have switched to comfort mode to save gas. I don’t know about you, but the expense to fill up my car with premium gasoline has skyrocketed. Yesterday at my neighborhood Shell Station I paid approximately $100 to fill up. It made me wonder what other people around the country were paying, and I came across a study published by SmartAsset. The article is titled “Where High Gas Prices Will Most Affect Residents – 2022 Study.”
Mar 25, 2022·4 min
The Potential Tax Benefits of Donating Stock
With your taxes on the horizon, you may be wondering what you can do to help make things easier. As it turns out, donating stock to a qualified charity provides some tax benefits!
Mar 22, 2022·3 min
But what if it really is the start of a bear market?
No bull market runs forever. While they can be scary, bear markets can be expected to occur periodically throughout every investor’s lifetime.
Mar 9, 2022·4 min
Do corrections mark the start of a bear market?
Nobody can predict with any degree of certainty whether a correction will reverse or turn into a bear market (that is, periods when the market is down by 20% or more).
Feb 25, 2022·1 min
Market returns tend to be muted until late in midterm years
Understanding how markets work over long periods can give you more peace of mind about your financial future. We understand your concerns and are here to answer them. Call us today to discuss your future. This is just one example of how understanding the markets during midterm elections usually works. 901-435-4250
Feb 17, 2022·1 min
A peek at investing in a Trump or Biden economy
As November 3rd is fast approaching, we seem to be fielding more and more questions about how the presidential election will impact personal investments.
Oct 23, 2020·3 min
Accelerate your investment account’s growth with automatic recurring contributions
An obvious but under-utilized tool that can quickly accelerate an investment account's growth is a commitment to automatic recurring contributions.
Sep 3, 2020·2 min
Cash: Trash or King?
Undoubtedly, you are familiar with the adage “cash is king.” It is a well-known expression sometimes used in analyzing businesses or investment portfolios.
May 11, 2020·3 min
Importance of Consulting a Financial Advisor for the Baby Boomer Generation
Is your financial plan on track? Are you diversified to weather the storm when the markets react negatively?
Apr 21, 2020·2 min
We're here for you as always
The last few weeks have been difficult. The exogenous shock of COVID-19 has created an atmosphere of confusion and panic across the globe.
Mar 13, 2020·3 min
Credit Score
Individual credit scores and what affects them can be a complicated and sometimes a mysterious part of personal finance.
Sep 27, 2019·3 min
Are you spending as much time following your finances as you are your NCAA Bracket?
After months of watching different college teams, listening to post-game recaps, and shocking injuries we are now in the middle of March Madness.
Mar 26, 2019·2 min
What should I do?
Showcased by gains in the S&P 500 for all twelve months, 2017 was the least volatile year in the stock market since at least 1986.
Nov 21, 2018·2 min
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