The failure of Silicon Valley Bank and Signature Bank caused a sharp sell-off in financial stocks with a smaller decline in US stocks overall. But after a brief downturn, US stocks overall nearly regained year-to-date highs, showing confidence in the overall economy to move through this concern about banks. When an adverse event happens, investors’ …Read More

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