Join us for the next edition of our monthly series where each of our team members at TFP share something their reading that we think you might enjoy too.
Bob Heykoop’s Choice: First Trust Portfolios – Fiscal Madness
This economic update (Fiscal Madness), from the First Trust economic team nails it! They share some interesting data about the current economy contrasting it to the 1980’s when we saw unemployment peak at 10.8%, the 10 year treasury rate just under 16%, and the budget deficit that was at 5.9% of the GDP.
Evan Barnes’ Choice: LPL Weekly Commentary – What Is Normal?
There are three primary reasons to own fixed income: diversification, liquidity, and income. We’ve experienced a challenging environment the last few years for bonds, but with the increase in yields recently, fixed income is providing income again. In their September 5th commentary, LPL Research analyzes the end of the bond bull market that started in the 80s, and how we may be heading back to a “normal” bond market.
Drew Barnes’ Choice: LPL Research – A Look at Stock Valuations Relative to Bonds
The continued rise in bond interest rates and the recent decline in corporate earnings has the Equity Risk Premium (ERP) at the lowest level since 2009. This means that investors may not receive much in extra compensation by investing in stocks over bonds. This piece by LPL Research details that a low ERP doesn’t necessarily equate to poor expected equity returns, it provides a more complete valuation picture for investors and indicates that bonds may have more appeal now than they have in quite some time.
Andrew Rhoads’ Choice: Kiplinger – How to Overcome Your Fear and Enjoy Retirement
If you are considering retiring and are worried about having enough money to sustain the life of your choosing…you are not alone!
Pete Koury’s Choice: Dr. David Kelly – Bull Market Investing
Last week the Federal Reserve met in Jackson Hole and at the end of the meeting Chairman Jay Powell stated that managing current monetary policy was like “navigating by the stars under cloudy skies”. Please enjoy this article by Dr. David Kelly of J.P. Morgan as he breaks down many of the key indicators the Fed is using and why “Reading the Tea leaves” has become so difficult.
Shane Wolfe’s Choice: Kiplinger – The 401(k) Catch-Up Contributions Problem for 2024
This article from Kiplinger helps bring clarity to the Secure Act 2.0 regarding 401k catch-up contributions that high income earners need to know about. In August, the IRS announced that the new rules would take effect in 2026.
*Certain information contained herein has been obtained from third party sources and such information has not been independently verified by TFP. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by TFP or any other person. While such sources are believed to be reliable, TFP does not assume any responsibility for the accuracy or completeness of such information. TFP does not undertake any obligation to update the information contained herein as of any future date.
