Last week we covered the speculation surrounding the Federal Reserve meeting. Since they didn’t propose additional stimulus at this time, many economists now believe they will do so when they meet on September 12th and 13th . Our first article this week looks into what may happen then. Next we turn our focus to Social Security strategies. When to take Social Security is not as simple as you may think. We also have an update from Ed Easterling on earning cycles and corporate profits and their impact on investors. Finally, we have an article that discusses the likelihood of further defaults after an initial sovereign debt default, i.e. Greece.
What Will The Feds Do Next? – Many economists believe the Federal Reserve will propose additional stimulus when they meet on September 12th and 13th . This article in Business Week makes a case for additional stimulus, given the fact that unemployment is high and the inflation rate is below the Fed’s target of 2%. http://www.businessweek.com/articles/2012-08-01/bernanke-the-reluctant-revolutionary
When To Take Social Security – This article in The Wall Street Journal focuses on some strategies for when to take Social Security. The answers are not as simple as you may think. At Day & Ennis, we can help you evaluate what is best in your situation. http://finance.yahoo.com/news/social-security-015200134.html
Time To Row, Or Sail?– Ed Easterling uses the metaphor of rowing or sailing to describe what investors should do during various market cycles. This article updates Easterling’s research regarding the earning cycle and corporate profits and the possible impact on the stock market. http://www.mauldineconomics.com/images/uploads/pdf/mwo080312.pdf
Defaulting Sovereigns Risk Second Restructuring – According to Moody’s, nations that undergo distressed debt defaults are at risk of defaulting a second time. Since 1997, thirty sovereign distressed debt defaults were followed by another default event. http://www.bloomberg.com/news/2012-08-07/defaulting-sovereigns-risk-second-restructuring-moody-s-says.html
We hope you enjoy reading these articles along with us and that you find them informative. Please forward this to your friends and family.
John R. Day and Bill W. Ennis