Wealth and Wisdom: Week of April, 24 2023

FactSet Data Research is forecasting a 6.5% drop in first-quarter profits among the companies that make up the S&P 500. That would be the second straight quarter of declining earnings, so you’re going to be hearing the term earnings recession a lot for the next few months.

The bigger news is what these companies are saying as they report this bad news, which is leading investors to surmise that things could get worse before they get better. An economic recession – where the whole economy actually shrinks – now seems to be a foregone conclusion.

I don’t believe you should rearrange your financial life around that possibility – recessions are a normal part of every business cycle, just as snowstorms and heat waves are a normal part of living in St. Louis. The trick is not letting yourself be caught off-guard when they happen – and realizing that they are always temporary.

Mild recession coming?

The Fed is forecasting a recession later this year, brought on by rising interest rates and recent bank failures. (Reading time: 2 minutes)

Last call for I-bonds?

As inflation continues to ease, the yield on once-popular Series I savings bonds looks to be heading lower soon. (Reading time: 3 minutes)

How we’re using our tax refunds

Average income tax refunds are smaller this year, but most Americans plan to make good use of the money – especially younger taxpayers. (Reading time: 3 minutes)

Silver linings in the bear market

Stock prices are still lower than they were 15 months ago. Here are 9 reasons you should consider that a good thing. (Reading time: 5 minutes)

It’s costing more to travel now

The pandemic created pent-up demand for travel – and the higher demand is pushing up costs. Here are some ways to save. (Reading time: 7 minutes)

Dollars on the sidewalk

With deficits and debt at record highs, the federal government is still finding ways to waste billions of dollars a year. (Reading time: 2 minutes)

Doubts about Social Security

Three-quarters of Americans no longer count on Social Security as a reliable source of retirement income – and their fears are leading to some bad decisions. (Reading time: 5 minutes)

Should we raise full retirement age?

Despite some generous incentives, a large majority of us would rather claim Social Security benefits early – and get less than we’ve earned. (Reading time: 6 minutes)

10 things Medicare doesn’t cover

Medicare will cover a lot of your healthcare expenses once you qualify. Just make sure you understand its limitations. (Reading time: 5 minutes)

Helping your adult children

There are ways you can support your family without putting your own financial well-being at risk. (Reading time: 6 minutes)

Words to the Wise

“No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth!”

– Ronald Reagan

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brown Family Wealth Advisors and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Expressions of opinion are as of this date and are subject to change without notice. Past performance does not guarantee future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

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