In the past six months, stocks of European companies, which were hit hard at the start of the war, gained about twice as much as US stocks: 34.5% vs 15.6%, as of April 1, 2023. This is an expression of investor confidence in Europe’s ability to find alternate sources of energy, and Ukraine’s ability to …Read More

In mid-2021, prices of goods and services in the US started to rise sharply because of pandemic-related effects: supply-chain disruptions, labor dislocation, and consumers’ built-up cash. The graph above shows inflation since 2010. Inflation peaked in June 2022 and is now trending down. A key component of overall inflation, the Personal Consumption Expenditures price index …Read More

Inflation makes everything more expensive, but there are two things that might ease the pain a little: higher retirement account contribution limits, and higher tax thresholds (standard deduction and tax brackets). Retirement Account Limits Account 2022 Limit 2023 Limit 401(k) and 403(b) $20,500 $22,500 Age 50+ Catch-Up $6,500 $7,500 TOTAL $27,000 $30,000 IRA and Roth …Read More

Bond Rates Go Down For 26 Years from 1985 to 2011 Bond Rates Stable for 9 Years from 2011 to 2020 Pandemic: Rates Down then Up Entire Period 1985 to 2022 For over 35 years, bonds delivered good returns and acted as a diversifier and damper on stock market volatility. Regular predictions and warnings about …Read More

There is a type of US Treasury bond called an I-Bond which pays an interest rate pegged at the current rate of inflation, now 9.62% (as of May 2022). This is a great, guaranteed rate of return, but there are some important limitations and complications. The rate varies every six-months. It is high now, but …Read More