Headline CPI for June came in at 1.6%, down from 1.9% the previous month. Fed’s chair Yellen reiterated her confidence about the U.S. economy, but noted that the committee, “…stands ready to adjust policy if it appears the inflation undershoot appears consistent.” The less hawkish tone sent the U.S. equity markets higher. The S&P 500 climbed 1.4%. Global stocks, represented by the MSCI ACWI, soared 2.1% and the Bloomberg BarCap U.S. Aggregate Bond Index rose 0.4%.
Markets weathered additional indications that global interest rates are moving higher while the world’s most powerful leaders met at the G20 meeting in Hamburg. The S&P 500 rose 0.1% as the MSCI ACWI fell 0.2% and The Bloomberg BarCap US Aggregate Bond Index slid 0.4% because of the increase in rates.
Six months ago, many Americans set realistic and achievable financial resolutions for 2017. Now that we’ve crossed the halfway point of 2017, it’s time for a financial checkup. Much like your biannual dentist appointment, it’s important to track your progress to determine if changes need to be made to your plan to achieve your financial goals and resolutions.
Prominent central bankers provided a slew of comments suggesting the cost of money is headed higher. The ECB’s Draghi, BoE’s Carney, BoC’s Poloz and BoJ’s Kuroda’s speeches at a central bank conference in Portugal last week carried a more hawkish tone than anticipated. It seems like a deliberate and coordinated communication that the rate environment is changing. Investors got the message as the speeches sparked a surge in yields and sharp swings in currencies.
You’ve worked hard for your money and during your retirement years, you want to have confidence that you can enjoy it. However, many retirees have common concerns as they move from asset accumulation to asset preservation. “Am I spending too much?” “Have I set aside enough for long-term care?” “Will I outlive my assets?” These are all questions many retirees think about. Read more