The alarm over rising interest rates by CNBC commentators has prompted Jeffrey Gundlach to say, “Don’t trust the pundits.” Why not? The founder of DoubleLine Capital explains the current situation. One investment that won’t be affected by rising rates, at least in the short run, are stocks. That’s according to David Rosenberg, recently speaking at John Mauldin’s annual strategic investment conference. It appears that Medicare premiums for many people may be rising as well. Overall, 2014 was a good year for investors and premiums rise based on reported income. We’ve included an explanation from the Social Security Administration to show how this affects Medicare recipients. If your 401(k) plan isn’t performing as it should, you may be entitled to do more than complain. A recent U.S. Supreme Court ruling clarifies the fiduciary responsibility of employers. Pensions & Investments covers the story.
Gundlach – Beware Of CNBC Pundits– On issues as central as the effect of quantitative easing or Fed tightening on interest rates, Jeffrey Gundlach, founder of Doubleline Capital, says you shouldn’t trust the pundits on CNBC. Gundlach also said that for the next six months investors should not fear rising short-term rates. The “psyche of market,” he said, “has gotten to the point that Fed will allow economy to run a little hot.” Read more…
Mauldin Strategic Investment Conference– John Mauldin’s much-anticipated annual strategic investment conference has just concluded. Thoughts From The Frontline reports on what the presenters had to say. Among the most interesting speakers, David Rosenberg contended that interest rate hikes won’t necessarily hurt stocks. The last time the Fed hiked was June 2006, and it took 18 more months before the market started to crack. Views of other well known investors were expressed including Jeffrey Gundlach, Lacy Hunt, Gary Shilling, Paul McCulley, Jim Bianco and more. Read more…
Prepare For Higher Medicare Premiums– Medicare premiums can change from year to year based on your reported income. If you are a Medicare recipient and had a good year in 2014, you may see higher premiums in 2016. If adjusted gross income (AGI) plus tax-exempt interest is over $85,000 for single taxpayers or $170,000 for married couples, they will be subject to the income related monthly adjustment amount (IRMAA) in addition to their regular Part B and Part D premiums. Read more…
401(k) Plans Must Be Monitored By Employers, High Court Says -The U.S. Supreme Court has ruled that employers providing 401(k) plans have an ongoing duty to review investments offered. It’s necessary to “monitor trust investments and remove imprudent ones,” according to the ruling. A six-year statute of limitations on breach of fiduciary duty doesn’t bar lawsuits against those who fail to carry out this responsibility, the court says. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller