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The countdown to Seattle is on! Cheer on #TeamSONC as they represent our state at the @2018USAGames July 1-6. Will you #RiseWithUs and help support their journey? Visit: ow.ly/ra8S30ksPPL
Use the "Rule of 100" for your portfolio: 100 - your age = investment allocation. E.g. 100 - 40 (age) = 60: 40% of portfolio in fixed income investments (safer/guaranteed inv.) and 60% in equity investments (stock market).
Expect lower equity returns over the next 10 years. 4.5 to 6.5% for Global and 3 to 5% domestic averages.
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Maintain a well diversified portfolio to make money regardless of which political party is in power.
The U.S. S&P has averaged around 10% annual returns over the past 50-60 years.
Since 1853, regardless of whether a Democrat or Republican has been president--the stock market has averaged virtually the same returns.
Historically, stocks have had negative returns every 6 years. Bonds have had negative results every 4 years. Maintain balance!
A well diversified portfolio will be very important in the coming years.
The U.S. economy may move late cycle growth expansion in 2017. The next 5 years may be more challenging for growth versus the previous 5.
The federal discount rate on 1/4/17 was 1.25. Expect that to rise to 1.5 sometime in 2017 but to stay below 2% through 2018.
With unemployment at a low 4.6%, expect wages to improve. If that translates to better productivity, it will be good for the economy.
Current U.S. inflation is running around 1.7%. Expect U.S. inflation greater than 2% in 2017.
Global growth for gross domestic product is expected to be in the 3 to 4% range in 2017.
U.S. and European equities have returned around 7.9% over the last 30 years. In the next 10 years, expect around 2% less than those results
Unemployment is low, inflation may start to heat up next year. A poll of Fed members indicates there might be 2-3 Fed rate hikes in 2017.
Will the Fed increase interest rates at their meeting in Dec? Probably by 25 basis points.
The Fed's inflation target is 2% with core inflation around 1.7% and increasing. Unemployment at 4.6%. Likely Fed rate increase next week.
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