How will the new congressional agenda affect your investments? Michael Townsend of Schwab takes a look at the Republicans’ ambitious plans and whether their agenda should change your investment strategy. The markets are currently listening to incoming President Trump, but ultimately their value is dependent on a jump step move from the 2% real GDP growth rate of the past 10 years to a 3%-plus annual advance. That’s according to Bill Gross, who wonders if the risk markets are overpriced and Treasuries over-yielded. For millenials, savings may take up a great deal more of their budgets if market returns drop. Jonathan Todd writes about the need for a new savings goal of 22%.
New Congress Plans Ambitious Agenda– Pressure will be on incoming President Trump and Congressional Republicans to make good on some of the many campaign-trail promises—and quickly. Here’s what to watch for from the new Congress over the first few months. If you’ve built a solid financial plan and a well-diversified portfolio, it may be best to ignore the political noise and focus on your long-term goals. Read more…
Bill Gross’ January 2017 Investment Outlook– Happiness has dominated risk markets since early November and despair has characterized global bond markets. Hopes for stronger growth via Republican fiscal progress/reduced regulation and tax reform have encouraged risk. The potential for higher inflation and a more hawkish Federal Reserve lie behind the 100 basis point move in the 10-year Treasury from 1.40% to 2.40% over the same time period. Are risk markets overpriced and Treasuries over-yielded? That is a critical question for 2017. Read more…
Millennials May Have To Save 22% Of Yearly Income For Retirement If Market Returns Drop– Millennials’ finances are already stretched by student loan debt and housing costs, but there’s another factor to consider: Compared with their parents, they may need to save much more of their income for retirement, according to a new NerdWallet analysis. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller
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