Forget Stock Predictions for Next Year. Focus on the Next Decade. – The New York Times
Economy
Echoes of the 2008 Recession
Why criticism of Black Friday shoppers is wrong – Vox
Every time I hear about Black Friday sales… 🔥💵
Every time I hear about Black Friday sales… 🔥💵
I have to think about how much black smoke and how smelly most of that junk would be once it’s used up and you toss it in a fire to get rid of it! The best thing to do for your own life is to spend less money and invest more.
NPR
The Federal Reserve ordered another big boost in interest rates on Wednesday, as questions bubble up about how much higher borrowing costs will have to go before stubborn inflation starts to come down.
The central bank raised its benchmark interest rate by 3/4 of a percentage point. The rate, which was near zero in March, has jumped 3.75 percentage points in the last eight months. That's the most aggressive string of rate hikes in decades, but so far it's done little to bring prices under control.
"Interest rates have risen at a whiplash-inducing speed, and we're not done yet," said Greg McBride, chief financial analyst at Bankrate. "It's going to take some time for inflation to come down from these lofty levels, even once we do start to see some improvement."
Annual inflation in September was 6.2%, according to the Fed's preferred yardstick — unchanged from the month before. The better known consumer price index shows prices rising even faster, at an annual rate of 8.2%.
NPR
The government's official scorecard shows a rebound in economic growth during the late summer and early fall. But analysts say it overstates the strength of the U.S. economy, just as earlier figures painted an exaggerated picture of weakness.
A report from the Commerce Department released on Thursday shows the nation's gross domestic product grew at an annual rate of 2.6% in July, August and September. That's in contrast to the first six months of the year, when GDP figures showed the economy shrinking.
The apparent improvement, however, is largely the result of fluctuations in things like international trade, which don't reflect the underlying health of the economy. They made GDP look artificially weak in the first half of the year, while pumping up the most recent figure.
"If you take a step back and look at GDP, it's gone effectively nowhere over the last year," says Mark Zandi, chief economist at Moody's Analytics. "One quarter or two it's down a bit. This quarter it's up a bit. But net-net, we're kind of treading water."
The investment strategy being pulled into America’s culture wars : NPR
In Florida, a state board chaired by Gov. Ron DeSantis recently barred investment fund managers and advisors from considering "social, political, or ideological interests" when making decisions for Florida's retirement system. In Texas and West Virginia, GOP leaders say they will block investors from state business who they claim "boycott" the fossil fuel industry. Fifteen other states are considering similar measures. And Republicans have said that if they retake Congress in the midterms, they plan to push federal legislation to curtail investment decisions they attack as "woke."
Anti-ESG Republicans say big financial firms are abusing their power to advance a liberal agenda on issues like diversity, social justice and, especially, climate change.
Many experts disagree, saying Republicans are distorting the goals and strategies of ESG investing.
It's hard for most people to get a clear read of what ESG is amid the overheated rhetoric. Is the idea to bring about social changes that couldn't be achieved at the ballot box? And what does it mean for things like your 401K when investors follow ESG principles.
This FAQ is for anyone who wants to better understand an investing trend that is becoming core to global financial markets and a new battlefront in American politics — including, possibly, in your own state.
I am not a big of ESG investing, because I think it increases risk by reducing diversification. It also encourages businesses to mix politics with sound economic decisions. While some businesses may benefit from catering and marketing to socially-conscience consumers, there is no guarantee that an ESG business will be more profitable then a non-ESG business. Businesses that are ultimately sustainable, consider social and environmental impacts of their business -- not because it drives up their stock value -- but because it's good policy.
Over the past 5 years, you would have gained nearly 20 percent more in gains, if you invested in a broad index fund like VTI (60%) rather then their ESGV (43%) fund. That's a pretty big spread. People invest to save for retirement, owning land, or whatever their financial goals are. But I just don't think politics should be involved, especially when it seems like such a self-defeating behavior that leads to reduced returns.