Question: Why did markets react negatively to the Fed's latest cut? Question: How do Washington budget battles affect investors?
History shows that those who can maintain a disciplined, long-term approach are better positioned to achieve financial success. This will only grow in importance in the coming year. Stock market valuations are well above average, the path of interest rates is uncertain, doubts about artificial intelligence are emerging, and geopolitical risks are escalating. There will likely be many more unforeseen events that will heighten investor concerns.
The national debt is quickly approaching $36 trillion, according to the U.S. Treasury, a fact that has fueled concerns among investors and economists. This means that the federal debt has nearly quadrupled since before the 2008 global financial crisis, and has grown every year since 2001. This adds to the recurring fiscal debates over budget deficits, the debt ceiling, government shutdowns, stimulus bills, and more.
After a historic campaign, Donald Trump has won the 2024 presidential election and Republicans have won control of the Senate. For half the country, this is a cause for celebration, while for the other half, this is a disappointing result that will require time to process. This reflects the divisions in our country on both social and economic matters that we hope will heal in time.
For those in or approaching retirement age, there is nothing more important than building a portfolio that can support a long, fulfilling retirement. Given the difficult inflationary conditions of the past few years, the risk that worries most retirees continues to be outliving their savings.
Article by James Liu, CFA. Founder and Head of Research Clearnomics. With just days to go until the presidential election on November 5, polls suggest it will be a close race between former President Donald Trump and Vice President Kamala Harris. Both candidates are campaigning hard in swing states, and investors may be worried about how either outcome might affect their portfolios. Given the intense political divisions in recent years, it’s not surprising that emotions...
The conflict between Israel and Hezbollah has escalated in recent days, raising the risk of a full-scale war and marking another chapter in Middle East instability.
Article by James Liu, CFA. Founder and Head of Research Clearnomics. As we begin the final quarter of the year, financial markets and the economy have defied the expectations of many investors. Rather than falling into recession, the economy has grown steadily, albeit at a slower pace, and inflation rates have fallen toward the Fed’s target. As a result, the macroeconomic environment has shifted to a monetary easing cycle, propelling the S&P 500 and Dow...
