The Economy: Happy New Year! … and a happy new year it is for global economic numbers with Germany growing at a blistering pace with the best employment numbers in years. The U.S. economy is likewise continuing to expand with no end in sight. Stocks are up, bonds are up, real estate is up, oil is up, manufacturing is up, optimism is up. Chicken Little is running in circles screaming about high asset valuations. But investors are looking at the Trump income tax trump and singing Happy Days Are Here Again. After all, in addition to the endless self-praise from The Swamp, Central Bankers have proven that at the slightest hiccup, inventive new types of monetary stimulus will rain down like Helicopter Money. Manna!
Food for Thought: Year end and into tax season. Financial planning rewrites. Annual portfolio reviews, document updating. What is the status of your wills, trusts, POAs, medical directives? Get them updated now! We do Monte Carlo Simulations for retirement planning. If we can help, please give us a call.
Music of The Week: Luna Blanca’s “Guitar Island”
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The Economy: The week’s economic highlight was Wednesday’s release of the Fed’s Beige Book. It showed moderate growth and little inflation. Lower demand in the economy is discussed as being the result of higher healthcare deductibles for consumers. More out of pocket for healthcare means less available for other spending. The Fed remains on track to again raise rates in December. The Beige Book was almost an afterthought to a week of upbeat economic news: Low inflation; retail sales up; manufacturing up; global stocks reaching record highs; investors pouring money into stocks; Industrial production up; housing up; Philly Fed Index up; Bloomberg Consumer Sentiment up. What’s not to like?
Food for Thought: My good friend Sam commented that my “More Money” email appears to be increasingly amazed at the non-stop rampaging bull market. He’s right. … You can slice and dice the metrics, the geopolitical environment and every conspiracy theory out there. Compelling arguments abound. To rest easier and become one with nature, simply accept that stocks will continue to go up until they don’t.
Music of The Week: Ziggy Marley’s “Conscious Party”
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