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Another Pleasant Valley Sunday

According to a news survey by The Millionaire Corner, a Series 65 online resource about investing, this highly charged political environment regarding the future is about as stressful as swatting at mosquitoes during a Friday night barbeque.

The real issues, at least as far as affluent investors are concerned, are stock market conditions, the economic environment and their own retirement–in precisely that order. All of this partisan-related posturing conjures up about a 5 percent concern (2 percent for millionaires), and that may be just because they were asked how much it bothered them. After all, if someone asks you to list five foods in your order of preference, you wouldn’t leave the last one off entirely.

This is good news, because it signals that more people feel more in control of their future, and less reliant on Congress to figure it out for them. 

[CLICK HERE to read the article, “Affluent Investors Keeping Close Watch on Stock Market Conditions,” at MillionaireCorner.com,  

[CLICK HERE to view graphics of “The recession and recovery in perspective,” at The Federal Reserve Bank of Minneapolis, April 26, 2013.]

In an even more blasé survey by Franklin Templeton,1 nearly a third of the surveyed respondents said they thought the stock market was flat or down last year, when in fact the S&P 500 was up 16 percent – and has performed admirably for the last four years. Because the majority of those surveyed also reported that they would be more conservative or make no changes to their investment portfolios, the study concluded that investors are still more concerned with avoiding loss rather than achieving higher returns.

[CLICK HERE to read the article, “What Ails the Economy? In a word: Washington,” at Yahoo! Finance, April 26, 2013.]

[CLICK HERE to read the article, “Job Picture Looks Bleak for 2013 College Grads,” at Yahoo! Finance, April 26, 2013.]

Despite people’s persistence in going to work every day, paying their bills, making plans for the future, and enjoying their families in this beautiful spring weather, headlines continue to warn us that our legislators are not doing their jobs and it’s causing great detriment to the economy.

The Commerce Department recently reported that the U.S. gross domestic product (GDP) grew by only 2.5 percent in the first quarter–substantially below expectations. It’s no wonder, however, since sequestration began in March. The new numbers reflect, at least partially, a 4.1 percent decrease in government spending, including the 11.5 percent reduction in defense spending.

The government cuts represent an interesting paradox as far as the economy is concerned, with one insider suggesting that, “Whatever your view is on government spending, it’s going to be a headwind for growth.”

[CLICK HERE to read the article, “First Quarter Growth, at 2.5%, Misses Expectations,” at The Wall Street Journal, March 20, 2013.]

Americans, being what we are–resilient to terrorism, the housing bust and, yes, backyard mosquitoes–are taking in all of this economic and policy gloom and doom in stride. If you want to talk about your future, regardless of what goes on at Capitol Hill, please give us a call.

 

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The information and opinions contained herein are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm. Content is provided for informational purposes only and is not a solicitation to buy or sell the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.   

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