economy, income, interest rates, retirement, risk management

Market Risks and the Wall of Worry

 

“Current Bull Market Continues To Climb A ‘Wall of Worry’” (1)

 

The “wall of worry” is one of the phrases frequently used to illustrate the resistance or fear of investors to invest in a stock market that had earlier gone down.  Since the Great Recession of 2008 and the financial crisis many investors have worried about the possibility of another financial crisis.

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economy, income, interest rates, retirement

Bond Yields are Moving Higher

On October 3rd, 2018 the 10-year yield moved dramatically higher increasing 3.3% in a single day. Pundits have listed many reasons for rates and bond yields to move higher… a strengthening economy, decreasing unemployment, rising oil prices signaling inflation, a Federal Reserve committed to further rate increases into 2019. (3)

 

These pressures have been building for some time and signal a good economic environment.

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economy, income, interest rates, retirement

Fed raises rates, and questions, around the economy

On June 13th, 2018 the federal reserve raised interest rates 25 basis points and altered their expectation to raise rates a total of 4 times this year, compared to earlier expectation of 3 raises.

 

In his meeting with reporters to discuss fed policy, fed chair Powell stated, “Households are in good shape, and that is so important, that’s where we got into trouble before, and its often around property and housing that you see real problems emerge but we don’t see that now, and we take some solace from that.”

 

However, he also said, “Economic strength hasn’t reached everyone.”

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