Economic and Investment News Bits
- The S&P 500 has had 24 record high closes YTD 2017 through Wednesday, June 14, 2017. Less than halfway through the year, it has already surpassed the total number of record closes from 2016. (Source: S&P Dow Jones Indices)
- One in five Americans never have a serious discussion about finances with their partner, and just 11% of parents are likely to have a conversation about money with their adult children. (Source: NBC News)
- Life expectancy has increased from 57 years for those born in 1929 to 79 years for those born in 2014. It is expected to surpass 90 years by 2030. Over half of all babies born in the U.S. today are projected to live to 100. (Source: Child Trends)
- 61% of Baby Boomers (born 1946-1965) are more afraid of outliving their savings than they are of death. (Source: Allianz)
- The 25 highest-paid hedge fund managers earned a collective $11 billion in 2016. Nearly half of the top-25 earners made single-digit returns for their investors, in a year when the S&P 500 was up 12% and the global stock benchmark was up 8%. (Source: The New York Times)
- 40% of the single family American homes that are owner-occupied were built before 1970. (Source: U.S. Census Bureau)
- The average grocery store carried 7,000 items in the 1990s. Today, they carry nearly 50,000 different items. (Source: Market Watch)
Thought for the Month
“If you can’t explain it to a six-year-old, you don’t understand it yourself.”
Albert Einstein, Nobel Prize-winning Physicist (1879-1955)
Chart for the Month (CLICK TO ENLARGE)
As a continuation of May’s chart that matched each states’ Gross Domestic Product (GDP) to comparable individual countries, this chart shows the $74 trillion global economy broken down by continent and top-contributing countries. Although the United States is by far the largest proportion of the global economy, it only represents 25%. China is second at around 15%, and Japan is third at just under 6%. This broad-based and widespread dispersion of global contributions is precisely why we stress to our clients the importance of having a globally diversified investment portfolio and avoiding home country bias.
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