Economic and Investment News Bits
- “I’m not convinced the current pessimism is warranted. Unemployment numbers have been good, there’s a new report of strong job openings, and better yet, there’s reasonable wage growth, enough that American employees are quitting their jobs to take higher-paying positions. That’s all good news. But you’ll be hard-pressed to notice it amid the dire headlines of the past couple of weeks. It’s not fashionable right now to be positive. I advise you to not be a fashionable pessimist,” (Source: Seth Jayson, The Motley Fool).
- Historically, 33% of college graduates in the U.S. that are employed are working in jobs that do not require a college degree. Following the 2008 global financial crisis, the percentage of recent college graduates working in jobs that do not require a college degree has climbed to 44% (Source: New York Federal Reserve Bank).
- The top 10% of taxpayers in 2013 earned at least $127,695 in adjusted gross income (AGI), reported 45.87% of all AGI nationwide, and paid 69.80% of all federal income tax (Source: IRS).
- “The S. should follow Canada’s One-for-One Rule, introduced in 2012. The rule requires that when a new or amended regulation is introduced, another must be removed,” (Source: Warren Buffet).
- The recent market selloff “is somewhat unjustified” noted David Kelly, JP Morgan’s Chief Global Strategist. “The U.S. economy is not even close to recession. January spending and employment numbers are strong, along with fairly good wage gains.”
- Top jobs for the future, according to Kiplinger, include speech-language pathologist, community service manager, computer systems analyst, app developer, registered nurse, information security analyst, health services manager, medical sonographer, physical therapist, nurse practitioner. Note: technology and health will continue to lead the way.
Thought for the week
“Kindness is the language which the deaf can hear and the blind can see.”
Mark Twain, American author (1835-1910)
Five Myths About Recent Market Declines
While the financial news in early 2016 has not been good, asset management company Guinness Atkinson suggests the broadcast and electronic media has “been hyperbolic in their treatment of the weak market. We have noted the words nightmarish, plunged, dive, rocked, plummeted used rather frequently.” But the world is not ending, and they list the following economic myths as among the worst: #1 China’s economy is a disaster and will lead to a global economic cataclysm. #2 Global oil demand is down. #3 Low oil prices are bad for the economy. #4 The Chinese currency is in serious decline. The company says “the world is NOT going to heck in a hand basket. The U.S. economy is stronger than many believe. We are spending less on oil, and importantly spending less for imported oil. Interest rates remain near historical lows, and inflation is low. We don’t know what the stock markets will do in the next week, month, or year. But we do have an unshakable faith that the market will do what they always do, which is fluctuate, wildly at times, but with a strong upward bias.”
Chart For February
The age 65+ employment average is at its historic high of 5.7%, a trend related to longer life spans, the decline in private pensions, insufficient planning, and the desire to remain productive.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, strategy, or product or any non-investment related content, made reference to directly or indirectly in this newsletter, will be suitable for your individual situation, or prove successful. This material is distributed by PDS Planning, Inc. and is for information purposes only. Although information has been obtained from and is based upon sources PDS Planning believes to be reliable, we do not guarantee its accuracy. It is provided with the understanding that no fiduciary relationship exists because of this report. Opinions expressed in this report are not necessarily the opinions of PDS Planning and are subject to change without notice. PDS Planning assumes no liability for the interpretation or use of this report. Consultation with a qualified investment advisor is recommended prior to executing any investment strategy. No portion of this publication should be construed as legal or accounting advice. If you are a client of PDS Planning, please remember to contact PDS Planning, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives. All rights reserved.