economic overview

World economic overview

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You know that retirement is coming. It isn’t as though it just shows up one day and takes you by surprise, so you need to get ready for it.” Batya Shevich, Warren Buffett: To Be Rich And Successful Is Easy!

With the Federal Open Market Committee raising the Federal Funds Rate for the first time in nearly a decade, it seems like a good time to take a clear headed economic overview.
Now, the Fed move is largely predicated on a robust employment market and related risk of inflationary pressure. Put that in the context of oil & gas and commodities falling through the floor, and you tend to think like Canada. So, what are equity markets telling us? Here are two opposing views: Why Stocks Need to be a Big Part of Your Portfolio in 2016 tells a tale of a failing bond market and focus on consistent dividend paying stocks, but then “Coppock Guide” Signals a Bear Market is at Hand tells a fascinatingly wonkish look at market tops over a very long time. Both articles are worth your time.
This came in advance of the rate hike, but the read is still worthwhile, bottom line: even a small rate hike, if Japan’s experience is any guide, will be difficult to hold. The Simple Explanation Why There is No Such Thing as a “Dovish Rate Hike”
This rate hike occurs in the face of a largely negative rate environment in the EU, and our friends to the North looking in that direction as well. That, I suppose, would presage good investment news for the US economy, but it does feel odd as the high rate outlier. The Next Domino: Canada and The Bank of Canada just said the 3 most controversial words in central banking: ‘negative interest rates’
I would be remiss if I did not tee up the downside potential, and this is a decent list of hot spots around the globe. A Pessimist’s Guide to 2016: When Everything That Can Go Wrong, Does Go Wrong

No matter what happens to global markets, you still want to retire, right?:
Knowing plenty of people who fall prey to the morning coffee routine, or picking up a quick lunch, I thought this was a great read. Cutting Back on Lunch and Coffee Could Save You $700,000 In other words, that Starbucks Grande is costing you a lot of retirement flexibility.
In the same vein, nine more ways you can save more. I’ll paraphrase here a Warren Buffett quote, don’t save what you don’t spend, spend what you don’t save. 9 Ways to Stop Wasting Money Now
Since I’m on a roll here, let’s not forget the impact fees have on your retirement accounts. This is a great story about how Vanguard single handedly is changing the landscape. The Company That’s a Bigger Threat to Wall Street than Occupy
While this does not play directly into your retirement, knowing this may have some meaningful implications for how you think about investing and it is a fascinating component of any global economic overview. These 2 charts basically tell the entire global demographic story
A friendly reminder about healthcare cost in retirement, it really is a big issue, and you really do have to be prepared for it. Health Care in Retirement Will Cost How Much?

Miscellany to lighten your mental load:
Everyone with an iPhone will like this trick. Make Your iPhone Faster With This One Simple Trick
Here is the convergence of two recurring topics here: travel and saving money. The 11 most underrated ski resorts in America
This is a little heavier, sorry, but it is really interesting, too. History in the remaking

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