@theMarket: Fed's Half-Point Rate Cut Surprised MarketsBy Bill Schmick,
03:08PM / Friday, September 20, 2024 | |
The Federal Reserve Bank's half-point interest rate cut surprised investors and traders alike this week. The central bank also indicated that the markets could expect more of the same in the months ahead.
The main three averages soared on the news on Thursday and into Friday. New highs went a long way in dispelling my fears that the last two weeks of September would be rocky. The giant-sized rate cut may have at least delayed the downside that usually accompanies this seasonal period in the stock market.
It was the first FOMC meeting in a long time where Fed watchers were unsure how much the central bank would lower rates. Historically, a 25-basis point 0 Comments
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The Retired Investor: Deals Coming Back in Some Consumer AreasBy Bill Schmick,
04:45PM / Thursday, September 19, 2024 | |
Consumers have been bludgeoned for years by higher prices. In this era of inflation, discounts disappeared as prices of everyday items climbed higher and higher each year. It has been a long time, but value is finally returning in various consumer areas.
This summer could be called the season of markdowns as corporations across America have become concerned that price-sensitive consumers have been trading down to cheaper goods and services. Many companies have seen sales decline as discount stores and labels have taken market share.
While the Federal Reserve Bank and the Biden administration applaud the progress made on inflation, the truth for the consumer 0 Comments
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@theMarket: Fed Expected to Begin Interest Rate Cuts Next WeekBy Bill Schmick,
03:50PM / Friday, September 13, 2024 | |
After two years of monetary tightening, the Federal Reserve Bank is poised to begin loosening its policy. Is the event already priced in or will the stock market celebrate with new highs?
It may depend on how deep a cut the Fed is willing to make. In my opinion, in the long run it won't matter unless you are one of those day-to-day options traders who live or die based on the next trade. Nonetheless, in a market that may well hit a new high next week, what the Fed does and how it talks about future cuts will be important.
Some believe the Fed should cut one-half of a percent (50 basis points), while others are in the camp that it will only need a 0 Comments
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The Retired Investor: Fewer Babies Threaten Future U.S. Economic Growth.By Bill Schmick,
04:37PM / Thursday, September 12, 2024 | |
The fertility rate in the United States has fallen by 3 percent since 2022. That is a historic low and marks the second yearly decline in a row. How will that impact the economy?
In the simplest terms, if you have lower population growth then you will have fewer people producing goods and services. That will result in slower economic growth. But it is not the only impact. A shrinking workforce will also mean there are fewer people paying taxes.
In a country like ours that has seen decades of increased spending and higher debt, the question becomes who will pay this growing obligation.
As our deficits expand at an increasing rate, while the 0 Comments
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The Retired Investor: Precious Metals Normally Fall in Septemberby Bill Schmick,
04:22PM / Thursday, September 05, 2024 | |
As one of the best-performing areas of the financial markets this year, gold and silver have been added to many investors' portfolios. And while every dip has been used as an excuse to buy, bulls should hold off a bit when making any new purchases.
The price of gold is up more than 20 percent and silver gained over 17 percent so far this year. Despite the sector's performance, there are many portfolio managers out there who won't touch precious metals and probably never will. "Too speculative," "impossible to analyze," and "we are not in the business of gambling" are all explanations I have heard through the 0 Comments
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