According to recent reports from Bank of America, Vanguard, and Fidelity, an increasing number of Americans are taking early, nonrefundable distributions from their retirement accounts—also known as “hardship withdrawals.” “According to the latest data from Fidelity Investments’ Q3 2023 retirement analysis, account...
The United States earned a C+ in a recent global study conducted by the Mercer CFA Institute Global Pension Index. Among retirement weaknesses in the United States, one is that almost 50% of American families have no retirement plan. “Retirement savings coverage and institutional quality retirement vehicles remain...
As of October 31, 2023, gold prices have outperformed stock prices in 2023. According to CNBC, the spot price of gold had grown 9.4% in 2023 while the S&P 500 had only grown 8.5%. “[Thomas DiFazio, director of investment and technical macro strategy at Strategas] said that gold’s strong performance compared to...
Gold prices have rallied as much as 10% throughout October, according to Financial Times, repeatedly reaching over $2000/oz. in late October and early November. JPMorgan’s top strategist recommends that consumers cut equities and instead allocate a portion of their portfolios to gold. “Our [economic] outlook is...
Rising interest rates have damaged housing affordability, and mortgage demand has fallen to the lowest level since 1995. Many homeowners are reluctant to sell their homes in the current environment, further restricting available housing. “Homebuying activity continues to pull back given reduced purchasing power from...
Over the course of 2023, volatility in the stock market has been credited to high interest rates and overvalued stocks. Based on technical signals and evaluation, analysts are predicting that more turmoil could be on the way. “Equity risk premium is near its worst ever level going back to 1927. In the 6 instances...
The U.S. federal debt reached a record high of $33 trillion in September 2023 and is growing rapidly. In conjunction with rising debt, rising interest rates make U.S. debt payments more costly for the government. “High and rising national debt will mean that more of the budget will go towards servicing that debt with...
After a series of bank closures earlier this year, regulators have placed more scrutiny on banks. In response to concerns surrounding stability in the banking sector, the FDIC has proposed new rules related to larger banks’ “living wills” and holdings of long-term debt. “If we had any doubts about the challenges in...
Inflation, as measured by the Consumer Price Index, was 3.7% higher on an annual basis in August, reversing a trend of falling inflation figures. According to Bloomberg, persistently elevated inflation has caused household incomes to fall by the largest margin since 2010. “This was bad news for Americans who feel...
Facing pressures from high interest rates, mortgage applications have plummeted to their lowest level since 1996. Homeowners who bought homes with low mortgage rates are reluctant to sell in a world where mortgages are now high, resulting in a limited supply of available homes. “Mortgage applications declined to the...
At the end of its fifteenth annual conference, the BRICS coalition of nations (Brazil, Russia, India, China, and South Africa) announced that six more countries will join the economic bloc. Members of BRICS have recently taken steps toward moving away from the dollar, and the addition of oil-producing nations like...
Typically, the FDIC only protects up to $250,000 in banking deposits, leaving the rest potentially more vulnerable to loss. After a wave of bank failures earlier this year, the FDIC was forced to step in and protect millions more in deposits. These extraordinary actions have forced regulators examine potential...
