With few signs of progress in the fiscal cliff negotiotions in Washington, the markets have been volatile this week. We can expect this kind of fluctuation to continue until the issue is resolved. We open the blog with a discussion of the possible effects these negotiations may have on the markets. Our second article includes a chart to help put long-term market performance in perspective. We then shift our focus to the new trend towards concierge medical services. With the primary physician shortage in this country projected to continue, many people may turn to this type of medical care. Our final article looks at the surprising fact that the U.S. birth rate has fallen to its lowest level since 1920. What will the effect be on Social Security and Medicare?
Obama Stands By Demand For Higher Tax Rates On The Top 2% – Very little progress is being made on the negotiations in Washington on the fiscal cliff. We expect the markets to continue to be volatile until the issue is resolved. If a resolution can be announced, we believe it would be very positive for both the economy and the markets relative to what may happen if we do nothing. http://www.bloomberg.com/news/2012-12-04/obama-says-republican-fiscal-cliff-offer-doesn-t-go-far-enough.html
A Perspective On Long-Term Market Performance – One certainty of the stock markets is that over the long haul, over-performance turns into under-performance and vice versa. This chart by Doug Short illustrates how the market can have very long cycles of under-performance and over-performance. http://advisorperspectives.com/dshort/updates/Regression-to-Trend.php
Is Concierge Medicine The Future Of Healthcare? – This article in Business Week discusses the growth of concierge medical services. There is currently a shortage of primary care physicians and this shortage is projected to get worse. Will more people consider hiring a concierge physician? http://www.businessweek.com/articles/2012-11-29/is-concierge-medicine-the-future-of-health-care#r=hpf-s
Recession Left Baby Bust As U.S. Births Are Lowest Since 1920 – The birth rate fell to a record low last year. The decrease was due to a decline in the number of babies born to immigrant women, who have led the growth in the nation’s population for the last two decades. The demographic trends are a cause for concern among the Trustees of Social Security and Medicare Funding. http://www.bloomberg.com/news/2012-11-29/recession-left-baby-bust-as-u-s-births-lowest-since-1920.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 Ennis