Generations explained..

The breakdown by age: Baby Boomers: Baby boomers were born between 1946 and 1964. They’re currently between 57-75 years old (71.6 million in the U.S.) Gen X: Gen X was born between 1965 and 1979/80 and is currently between 41-56 years old (65.2 million people in the U.S.) Gen Y: Gen Y, or Millennials, were born between 1981 …

Generations explained.. Read More »

Leading Economic Indicators are Flashing Yellow!

The conference board’s Leading Economic Index (LEI), the most reliable and significant indicator of recessions, has been trending down for the past two months. The LEI (a combination of ten leading indicators) usually drops far ahead of the forthcoming recession and has started dwindling, indicating a probable downturn shortly. Higher inflation, rising interest rates, supply …

Leading Economic Indicators are Flashing Yellow! Read More »

How Big a house you can afford?

The US median household income is $72000, assuming 30% of the gross income (pretax) spent on housing, or $1,800 a month; a typical household could have afforded a $455,000 house when interest rates were at 2.5%. However, with interest rates hovering around 5.9%, affordability dropped to $303,000. As of the first quarter of 2022, the …

How Big a house you can afford? Read More »

Historical Market Returns

Historically market returns are positively skewed. I plotted the market returns from the pre-depression era to the last year, 2021. They ranged from negative 44 percent to 53 percent. If we ignore the outlier returns, in most years market returned between ten to twenty percent with an average return of twelve percent, including dividends. More …

Historical Market Returns Read More »

A sigh of relief or bottle half full?

Demand for workers remained robust in the spring, with April job openings and the number of times workers quit their jobs decreasing from their record highs. On Wednesday, the Labor Department said there were a seasonally adjusted 11.4 million job openings in April, a decrease from an upwardly revised record high of 11.9 million openings …

A sigh of relief or bottle half full? Read More »

U.S. Inflation reached to 8.3 percent Annual Rate in April.

U.S. Inflation reached to 8.3 percent Annual Rate in April. U.S. inflation remained close to its highest annual rate in four decades last month, declining only slightly to 8.3 percent, showing that the economy continued to face upward price pressures. Last month, the Labor Department’s consumer-price index reading marked the first drop in inflation in …

U.S. Inflation reached to 8.3 percent Annual Rate in April. Read More »

$128,000 makes you feel financially good

According to a Personal Capital and Harris Poll survey, feeling financially healthy means pulling down a six-figure salary. The survey showed that the average amount American adults said they’d need to earn to feel-good financial shape was $128,000. That’s far from the median U.S. household income in 2020 of $67,521. The report found that this …

$128,000 makes you feel financially good Read More »