Are the equity markets facing a near-term correction? Investors concerned about the current market volatility may profit from this week’s analysis by Liz Ann Sonders and her team at Schwab. Much of the present market instability stems from anticipating an interest rate hike. Jeffrey Gundlach, however, is one analyst who doesn’t think an increase is imminent. If you’re planning for your retirement, there’s no time like the present to learn more about your Social Security benefits. A surprising 70% of Americans flunked a recent quiz on the subject from Massachusetts Mutual Life. You can take the quiz yourself at the link below to see where you stand and how you can maximize your benefits.
Schwab Market Perspective: Tug Of War– Liz Ann Sonders and her team at Schwab believe a market correction risk is still present in the near-term. That’s due to the somewhat extended valuations, numerous risk factors such as the Greek debt situation and geopolitical issues, and the extended period since the last official correction in equities (April-October, 2011). However, Sonders’ team at Schwab believes such a move would be healthy and provide a set up for the bulls to reestablish their dominance. In the meantime, investors waiting to invest for such an event have missed much of the upside. The advice: don’t attempt to time the market, and stay diversified. Read more…
Gundlach’s Prediction On Interest Rates– Jeffrey Gundlach, founder of DoubleLine Capital, says the consensus now is that there is a 30% chance of a Federal Reserve rate hike in September and a 60% chance in December. However, he believes both of those probabilities are too high. He thinks the Fed will be slow to raise rates. In this article, Gundlach explains his view and the possible effect on the bond market. Read more…
A Stunning Social Security Knowledge Gap– A quiz commissioned by Massachusetts Mutual Life Insurance asked 1,500 Americans 10 true/false questions about the Social Security program. This year the program will pay out retirement benefits totaling almost $55 billion each month to more than 42 million Americans. The results were not encouraging. More than 70% of those questioned flunked the test; only 28% scored 60% or higher. Only one person knew the correct answer to all 10 questions. This Kiplinger article explains the results and you can take the quiz yourself. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller