Despite all the distractions in the news, the U.S. economy’s resilience remains remarkably strong.
Here are key fundamentals easily lost amid recent headlines dominating the news cycle.
In the first half of 2018, large-company stocks in the Standard & Poor’s 500 index returned 1.7%, ending the quarter about 6% lower than January’s all-time high.
Small-company stocks in the Russell 2000 stock index returned 7%, while investors who bought into TV ads for gold and silver investments were sorely disappointed with their 4.3% loss in the first six months of the year.
Signals of economic strength are about as strong as they ever get, but so is the background noise.
The signal to noise ratio of the economy is a blaring anomaly.
Here’s a Father’s Day financial tip: put your children to work!
Paying your kids to do chores regularly can be a satisfying transaction for parents and teach children responsibility, but it will also provide tax-free income to your children a half-century or so from now when they retire.
Conventional economic wisdom holds that the record-low unemployment rate will cause employers to bid up wages, which then will be passed through to consumers in the form of higher prices, triggering rising inflation.
However, conventional wisdom is being shattered.
The progress of humanity moves inexorably slowly, but there is irrefutable evidence that Americans are better off than they were 10 years ago — about 20% better off.
Real disposable personal income grew at an average annual rate of 2.2% since the end of the last recession.
The Economy is Changing.
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