Does the recent record-breaking rise in consumer spending mean that economic growth is accelerating? Lucia Mutikani reports on the latest developments for Reuters. While stocks continue to be sluggish, Liz Ann Sonders and her team at Schwab counsel investors to remain patient. They offer a forecast for the second half of the year. The McKinsey Global Institute says investors will be well advised to adjust their expectations downward, at least for the immediate future. Laurence B. Siegel takes a look at the stats from the “glory days” of stocks and wonders if we can expect them to return. While the prospect of cognitive decline is frightening to most investors, some aspects of it can be eased by working with your financial planner to prepare strategies for coping should it become a challenge.
U.S. Consumer Spending Increase Strongest In Over Six Years– U.S. consumer spending recorded its biggest increase in more than six years in April as households stepped up purchases of automobiles, suggesting an acceleration in economic growth. The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 1.0 percent last month as households bought a range of goods and services. Read more…
Stocks Stuck In The Muck– Domestic stocks continue to spin their wheels, remaining in a relatively broad range for a couple of years. The recent weak earnings season didn’t help to resolve the uncertainty. We don’t believe we’ll see a repeat of the recession-fear fueled January-February correction according to Liz Ann Sonders and her team at Schwab. Read more…
Diminishing Returns: Why Investors May Need To Lower Their Expectations– McKinsey Global Institute forecasts a real (inflation-adjusted) stock market total return, including dividends, that ranges from 4% to 5% in their low-growth scenario to 5.5% to 6.5% in their higher-growth scenario.These compare to a historical average of approximately 5.9% (since 1926). The McKinsey report also makes forecasts for bonds. Their low-growth forecast is for a real return on 10-year U.S. Treasury bonds of zero to 1%, and their higher-growth forecast is for a real return of 1% to 2%. Read more…
Memory And Your Family– When memory goes, so goes the ability to manage everything from relationships to decisions on family wealth. What happens next? Coping with a loved one with cognitive decline will never be easy, but the right information can help empower families with real-time strategies and proactive steps to help with responsibilities, including the transfer of legal, financial and medical details to the next generation. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller