Economic and Investment News Bits
  • “The too-good-to-be-true” stories about folks who made a miraculous fortune in the stock markets are almost always bogus. If even 10% of the stories out there were true, the secret sauce used would no longer be secret. Many individual investors believe the average hedge fund makes huge amounts of money for its clients every year.  The truth is that most do not do very well at all.  The grass is not always greener,” (Source: Morningstar, Inc.).
  • Consumers can expect a massive security upgrade to their credit cards in the near future. Recent retail card breaches have accelerated a transition to chip-and-pin technology. Expect massive re-issuance of credit cards in the near future.  Europe, Asia, and Latin America have already adopted unique user code cards rather than the less secure anonymous swipe cards.  (Source: CNBC)
  • “I think a global currency war (kicked off by Japan in 2013 and now just heating up) and a rising bull market for the U.S. dollar are the big macro-economic drivers for the next four to five years,” (Source: John Mauldin).
  • Changes are coming to IRAs in 2015. First is the new IRA option, called myRA. It is a Roth IRA account that isn’t connected to an employer, fully guaranteed by the federal government (meaning government bonds).  Next are increased limits on 401k contributions that allow workers to contribute $500 more in 2015.  Third is a tax credit for taxpayers with AGI of less than $30,500 per year, that gives credit up to $1,000 in taxes for contributing to a 401k or IRA.
  • “Even with the adjusted 3rd quarter economic data coming in at more than 4%, the total GDP for 2014 looks to come in at 2.3%, well below the 3% the Fed expected last December and essentially unchanged from 2013,” (Source: Jeremy Siegel).
  • Ohio, Iowa, and Illinois are tied for third among states in popcorn production. Nebraska is the largest producer, followed by Indiana at a close second.
Thought for the week

“Age is an issue of mind over matter.  If you don’t mind, it doesn’t matter.”

Mark Twain, American author (1835-1910)

Announcing New Fraud Prevention Steps

As we noted in our second bullet point on page one, computer hackers are becoming more diligent in their efforts to steal consumer information.  As a reminder, PDS Planning will not act on written or e-mail requests for cash to be transferred to outside, un-linked bank accounts without verbal confirmation with clients.  Going forward, in addition to paperwork that must be completed, we will also require verbal approval, by phone or in person, to establish any new links to bank accounts.

Graph of the Week (CLICK TO ENLARGE)


The 10-year Treasury rate is used as a proxy for many important financial matters, such as mortgage rates.  The solid line above shows how the rate has changed over the past 12 years.  Many Wall Street economists forecast this rate each quarter.  The dotted lines show how these forecasts have consistently been wrong over the past decade.  Economists have expected rates to begin to rise, when they have continued to fall during those 12 years.  (Source: Deutsche Bank)


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.  Investment conclusions and strategies suggested in this report may not be suitable for all investors and consultation with a qualified investment advisor is recommended prior to executing any investment strategy.  All rights reserved.