Recently we had a hesitant client tell us about all the reasons she was nervous about investing in the markets:
What if interest rates increase? What if they don’t?
What happens if we elect a Republican president? How about a Democrat?
What effect does global warming have on the markets?
What if we break out into cyber war? Continue reading
During the summer months some of us like to cook outside – and slow cookers seem to be all the rage this year! The food may seem to take forever to cook, and we often can become impatient waiting for signs of progress.
We may have the same feeling when contemplating most of the world investment markets. Investors have finally decided that a diet of foreign bonds paying negative interest is unhealthy. While in the U.S. we are still w-a-i-t-i-n-g for the Federal Reserve to raise interest rates. The latest forecast is for a September rate increase. We can only hope! In the meantime the bond markets are suffering and definitely cooling. We saw big declines in bond values and returns for the second quarter, as hope for an interest rate increase in June evaporated.
Consumers in the U.S. enjoyed a little relief as energy costs declined – a useful prelude to the summer driving season instead of the usual increases in gas prices. Housing is recovering, employment is stabilizing and, although excruciatingly slow – we are indeed cooking here!
The middle class isn’t growing, businesses are looking for a competent labor force and our ‘Greece next door’, Puerto Rico, can’t pay it’s $72B debt — all in this week’s Inside the Economy. Larry also covers the excitement in China’s markets, growth potential in Europe and touches on good news for Italy and France. While Larry may say there isn’t much excitement in the economy this week, a lot of worthwhile questions are raised by the SH&J team during the discussion. Listening in will bring you up to speed on many U.S. and global economic issues.
Sharkey, Howes & Javer Blog 