Wealth and Wisdom: Week of December 4, 2023

Investors have been hoping for a so-called ‘Santa Claus rally’ heading into December, and this year they were not disappointed. As of late last week, the S&P 500 had bounced about 10% off its late-October low, and the index is less than 5% from its all-time high established in the early days of 2022.

Why the enthusiasm? The inflation genie appears to be all but back in its bottle (see our first item below), which has taken further interest rate hikes off the table for now. In fact, a majority of investors – as indicated by the interest-rate futures market – predict the Fed will start cutting rates by its May policy meeting, with up to four cuts expected by the end of 2024.

I shouldn’t need to remind you that predictions like these tend to last about as long as tickets to a Taylor Swift concert.

Are we done with inflation now?

This respected economist/blogger believes inflation is now under control and interest rate cuts are coming. Here’s his evidence. (Reading time: 4 minutes)

Why you should invest today

If you are a young or beginning investor, please spend five minutes to read this article. Then read it again. And then save it somewhere to read later. (Reading time: 5 minutes)

Is ChatGPT smarter than your financial advisor?

Artificial intelligence can help you plan your retirement – but for now at least, you’re probably better off getting advice from a fellow human. (Reading time: 7 minutes)

Underperforming their own investments

Why are actual investor returns almost invariably lower than the very investments they own? (Reading time: 4 minutes)

‘Are Republicans or Democrats better for the stock market?’

With an election year approaching, you might be surprised by this research – but for your portfolio, it might not matter. (Reading time: 9 minutes)

ETFs go mainstream

U.S. investors now hold more than $7 trillion in exchange-traded funds – largely at the expense of their mutual fund competitors. (Reading time: 4 minutes)

Budgeting templates

Technology can help you get your spending under control – and it doesn’t have to be fancy. (Reading time: 4 minutes)

Retirement minus 10 years, and counting

If you are planning to retire within the next decade, here are 10 financial goals that could increase your odds of success. (Reading time: 7 minutes)

Webinar: Planning for Retirement Healthcare Costs

Our latest client webinar is aimed at helping clients make a smooth transition from employer-based health insurance to Medicare. (Running time: 48 minutes)

The curious story of Geoffrey Holt

He lived like a pauper in a mobile home, with little furniture and no TV or computer. But he left behind an investment fortune that is helping his small-town neighbors. (Reading time: 8 minutes)

Words to the Wise

“Happiness resides not in possessions and not in gold – happiness dwells in the soul. By desiring little, a poor man makes himself rich.”

– Democritus, Greek philosopher

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