How Are Markets Shaping Up for the New Year?

The US market has performed strongly in 2015. Across all indices, the year to date performance of the US market generated a 21.36% return. The Dow Jones Industrial Average gained 27.75%, the NASDAQ Composite Index rose 28.86%, the S&P 500 21.86%, and the New York Stock Exchange Composite PR rose 14.86%. These figures are indicative of a bullish market, and that sentiment is likely to spill over into 2018 as sweeping tax reform, interest rate hikes, and bullishness propels US markets. The performance ...

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Inflation-Proofing Your Retirement Portfolio

To hear the talking heads tell it, there’s no inflation out there. And with the price of oil (and therefore gasoline) in a tailspin, inflation looks like the last thing anyone should be worried about. But long-term numbers tell a very different story. According the Bureau of Labor Statistics Inflation Calculator, prices have roughly doubled in the last 25 years. It now takes $1,915 to buy what $1,000 bought in 1989. That works out to an average annual inflation rate of roughly 3%. It’s also important ...

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How Government Monetary Policy Works

The monetary policy is controlled by government managed Central Banks. In the U.S., it is called the Federal Reserve or Feds. In Europe, it is called the ECB (European Central Bank). Australians call theirs the Reserve Bank of Australia (RBA) and in most countries it is referred to as the Central Bank. Monetary policy is used to influence the level of interest rates. This in turn influences the investment behavior of firms and individuals, the consumption level of households, and the supply of credit ...

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