With the Fed’s announcement that it’s increasing interest rates, it seems likely that inflation is going to be a concern for investors in the near future. Much of this is fairly predictable, as the policies put forward by the new administration typically lead to inflationary pressures.
Public education after high school is now seen as a necessity by many Americans, particularly given that many companies require some form of degree to even be considered for an entry-level position. Unfortunately, this is coupled with spiraling college debt, which has recently exceeded $1 trillion.
Retirement is a key part of most Americans’ plans, and many are saving via 401(k)s and IRAs. However, different generations save in different ways, and the focus on saving shifts throughout the years.
This sudden drop in the markets is an important reminder that nothing goes up forever. If it rises too high, it’s likely that they’re overvalued and have turned into a bubble, a bubble which could burst at any moment.
Much has been said of the latest proposed amendments to the Affordable Care Act, with most media focused on middle and low-income earners. If it is repealed in whole or in part, it could affect the retirement plans of individuals at all income levels, especially for those who have to retire early and haven’t planned for it.
A couple weeks ago, the company behind Snapchat, Snap Inc., went public. The valuation was a little over 29.3 billion dollars by the end of day one. While that may seem appealing to investors, we have to keep in mind that they lost 514 million dollars last year; that is a lot of money to lose.
When the Federal Reserve raised the interest rate to 0.75% in December, they projected another three rate hikes over the next year. The first of those has just been enacted in their March meeting, and the rate is now 1%, returning it for the first time to the level it was at before the 2008 economic crash. The move was not unexpected. Experts have been predicting it all year, and Fed Chair Janet Yellen made it clear in the weeks [...]
The new administration has big plans for stimulating the US economy, and as a result, gold is expected to rise, increasing the value of your investments.
Conventional wisdom in the aftermath of the Great Recession seems to be that the massive amounts of money pumped into the economy by various central banks — including the Fed — saved the world from global collapse. However, few can articulate why the recession occurred, although the subprime mortgage market certainly had an impact. This was just one factor, though.