The Federal Budget Deficit and Continuing To Kick the Can Down the Road
October 21, 2013
Just after midnight on October 17th, President Obama signed into law a measure to extend the nation’s
borrowing authority into early 2014 and end the government shutdown. The deal, which avoided a
default of the world’s biggest economy and means that furloughed federal workers can return to their
jobs for the first time since September 30th, funds the government at Republican-backed spending
levels through Jan. 15, 2014, and suspends the debt limit through Feb. 7. This deal appears to be
nothing more than an exercise...
Third Quarter 2013 Financial Market Commentary
All eyes are on Washington D.C.
During the third quarter U.S. stock-market indices continued their move into record territory after rebounding from
an August sell-off sparked by worries about the outlook for Federal Reserve (Fed) policy. The S&P 500 stock index gained 4.7%. Despite weakening in the final days of September amid political bickering in Washington D.C. over the federal budget and debt ceiling, the S&P 500 finished just 2% below its all-time high reached on September 18th. The index is up only 0.7% from where it stood on May 21st, the day before Fed Chairman Ben Bernanke warned that...
The Fed’s Catch 22
September 18, 2013
Today, at the conclusion of its two day Federal Open Market (Mouth) Committee meeting, the Federal Reserve (Fed) unexpectedly refrained from reducing the $85 billion pace of monthly bond buying, saying it needs to see more signs of lasting improvement in the economy. “The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases.” While “downside risks” to the outlook have diminished, “the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement.”
How Do You Know When You Have Enough to Retire?
There is no simple answer, but consider some factors.
Provided by Luke M. Johnson, President Legend Capital Group
You save for retirement with the expectation that at some point, you will have enough savings to walk confidently away from the office and into the next phase of life. So how do you know if you have reached that point?
Retirement calculators are useful – but only to a point. The dilemma is that they can’t predict your retirement lifestyle. You may retire on 65% of your end salary only to find that you really need 90% of your end salary to do the things you would like to do.
That said, once you estimate your income need you can get more specific...
Market Commentary: A Call to Inaction
September 3rd, 2013
It’s Labor Day evening and I am sitting in my living room contemplating the weekend’s activities. Not the various sporting events or barbecues attended, but ruminating on the plethora of special news reports regardingSyria. FirsttherewasgoingtobeastrikeandnowtherewillbeaCongressionalvotebeforea strike. If Congress votes no, then what action will President Obama take? This political posturing and uncertainty comes at a bad time as our nation faces a potential government shutdown, debt ceiling debate, andappointmentofanewFedchairman. Eachoneoftheaforementionedeventshasthepotentialto wreakmarketvolatility,butthecombinationofallofthemcausedmetopanic....