Americans are saving less these days. Here’s why and what that means
Americans haven’t been stashing money into their savings accounts like they used to, according to government statistics. That’s part of the reason why consumer spending has been so robust since the economy ascended from pandemic depths, despite high inflation and elevated interest rates. But when saving slows (or stops), it puts households in a vulnerable […]
US Treasuries Fall as Traders Focus Again on Inflation Risks
The bid for Treasuries that swept through markets ahead of the weekend is unwinding amid hopes the conflict between Iran and Israel will now calm, with attention returning to the inflationary forces dogging the world economy. The yield on 10-year securities rose as much as six basis points to 4.58% on Monday, more than halving […]
Americans think they need almost $1.5 million to retire. Experts say to focus on another number instead
Americans’ “magic number” savings goal for retirement has increased by over 50% since 2020. But experts say the secret to building true wealth is having a high savings rate. When it comes to retirement, Americans have a new number in mind — $1.46 million — for how much they think they will need to live […]
Inflation is sticking around — here’s where prices are rising and falling
Americans plagued by surging prices over the past 20 months continue to face strain as the cost of everyday necessities remains elevated following a hotter-than-expected inflation reading in March. The Labor Department said Wednesday that the Consumer Price Index (CPI), a broad measure of the price for everyday goods, including groceries, gasoline, and rent, rose […]
Another hot inflation reading fans fears Fed will push back rate cuts
Another hotter-than-expected inflation reading is fueling investor fears that the Federal Reserve will have to push back the number and timing of interest rate cuts this year. The Consumer Price Index (CPI) rose 3.5% over the prior year in March, an acceleration from February’s 3.2% annual gain in prices and more than economists expected. The […]
Why auto insurance costs are rising at the fastest rate in 47 years
As car prices moderate from a pandemic-era surge, insurance has pushed the cost of car ownership to the brink for many Americans. New data out on Wednesday from the Bureau of Labor Statistics showed auto insurance costs last month were 22.2% higher than they were a year ago and increased from February’s 20.6% year-over-year gain. […]
Stocks Fall on Fears Rate Cuts Will Be Delayed: Markets Wrap
Stocks and bonds dropped around the globe as solid economic readings and a rally in commodities spurred speculation that major central banks will keep interest rates higher for longer. In a revival of the “good news is bad news” trade, better-than-estimated data on US job openings and factory goods orders added to skepticism about the […]
The amount of money Americans think they need to retire comfortably hits record high: study
Inflation has crept into every part of Americans’ lives, including how much they now think they need to retire comfortably: a record $1.46 million, a study released on Tuesday said. That’s a 53% surge since the $951,000 target Americans reported in 2020 and a 15% increase from last year’s $1.27 million, according to Northwestern Mutual’s […]
S&P Global downgrades outlooks on five regional US banks to ‘negative’
Ratings agency S&P Global on Tuesday downgraded its outlooks for five regional U.S. banks to due to their commercial real estate (CRE) exposures, in a move likely to reignite investor concerns about the health of the sector. The ratings agency downgraded the outlook for First Commonwealth Financial, M&T Bank, Synovus Financial, Trustmark and Valley National […]
‘The math just does not add up’: Stock gains are at odds with reality, economist David Rosenberg says
The stock market is at odds with what is going on in the economy, top economist David Rosenberg says. The latest market frenzy has shades of July 2007, when stocks were caught in a swift decline just three months later, and Rosenberg notes that the mania fueling gains is “beyond the extreme.” In a note […]
Marginal vs. effective tax rate: What’s the difference?
When you’re planning for taxes, it’s helpful to know both your marginal tax rate and your effective tax rate. Marginal tax rate is the percentage you pay in taxes on the last dollar you earn, while effective tax rate is the average tax rate you pay overall to the federal government. The difference between the […]
Consumer prices rise more than forecast as inflation pressures persist
Inflation pressures remained persistent in February, as prices for shelter and gas rose, according to the latest data from the Bureau of Labor Statistics released Tuesday morning. The Consumer Price Index (CPI) showed prices rose 0.4% over the previous month and 3.2% over the prior year in February, more than forecast and an acceleration from […]
NYCB Ballooned Despite Real Estate Warnings in Years Before Fall
The mood was practically giddy when the heads of two regional banks hosted a town hall in the spring of 2021. The industry’s long drought in mergers was ending, and two lenders below the public’s radar, New York Community Bancorp and Flagstar, were poised to become more formidable by joining forces. “I look at it […]
S&P 500 edges lower as investors hold their breath ahead of economic data
The S&P 500 closed slightly lower on Monday after a choppy trading day as investors took a pause ahead of economic data and Fed Chair Jerome Powell’s congressional testimony. Apple closed down 2.5% following a $2-billion EU antitrust fine for preventing Spotify and other music streaming services from informing users of payment options outside its […]
Be wary of ‘concentration risks’ in tech ETFs: Strategist
Tech ETFs saw massive inflows of over $17 billion last year, according to VettaFi. However, Financial Futurist Dave Nadig, says many are “overdone” in mega-caps like Nvidia (NVDA) and Meta (META) which drive gains. He warns of “concentration risks,” noting that in the Technology Select Spdr Fund (XLK) just 5 names account for more than […]