Zacks Investment Management provides insight into the biggest news stories, and key factors that we believe are currently impacting the market such as:
Are Baby Boomers Dropping Out of the Workforce? About 10,000 baby boomers turn 65 every day, and by 2030, all baby boomers will be 65. This data point has significant economic implications, as a massive portion of the current workforce marches towards retirement. At the end of the day, economic output (GDP growth) depends on how many workers there are in the economy, multiplied by how productive each worker is. When given some deeper thought, it is plain to see that baby boomers can, in effect, be a ‘double whammy’ on the economy – retiring in big numbers, and also collecting entitlements (Social Security, Medicare) at an increasing rate. This dynamic could put a strain on the economy and deficits. Enter Covid-19. The pandemic is said to have accelerated retirement, with the proportion of older workers leaving the workforce in greater-than-expected numbers. Employment across all demographics fell during the pandemic, but baby boomers have not returned to the workforce as the economy reopens at nearly the pace of younger workers. This decline in labor force participation could weigh on growth.1
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8 of the Biggest Financial Mistakes You Should Avoid
Many investors, especially those who are trying to plan for retirement, may be wondering how to prepare for what’s to come. With the current state of the market being volatile, there is no definite answer. However, we believe that it’s better to prepare for any given financial situation.
While there are many unknowns at present, we believe there are eight common mistakes that many investors make when planning for retirement. In our guide, 8 Retirement Mistakes to Avoid, we outline these mistakes and how you can potentially avoid them.
If you have $500,000 or more to invest and want to learn more, click on the link below to get your free copy:
Learn About the 8 Retirement Mistakes to Avoid!2
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Ship Freed from Suez Canal – After six days blocking a key trade route, the massive container ship was freed and moved north to an anchor point. The Suez Canal is responsible for facilitating about 13% of global maritime trade and 10% seaborne oil shipments, making it a critical component of the global supply chain. Indeed, some 320 ships have been waiting to pass through the canal, many carrying millions and millions of dollars’ worth of goods bound for Europe. All of the re-routing and supply chain bottlenecks created could have the dual effect of creating longer delays for deliveries and putting pressure on companies to pass increased costs to customers. Issues with the supply chain are not limited to the Suez Canal, however. In the ports of Los Angeles and Long Beach, 24 container ships (as of last Monday) were waiting to offload millions and millions of dollars’ worth of medical equipment, consumer electronics, fuel, and other goods. Taken together, the two ports handle over 30% of U.S. container imports, which explains why there have been so many delays in deliveries and issues with inventory restocks. One of the issues driving the supply chain mess is a ‘good problem’ – demand returned to the global economy at a faster pace than many companies anticipated.3
Tracking Inflationary Pressures – Supply chain issues can create price pressures, and coupled with rising raw-materials costs, could contribute to an uptick in global inflation. Many Chinese exporters are reportedly increasing prices for goods they sell abroad, which will arguably find its way to end consumers eventually. In recent history, factories in China were a strong force for keeping prices low, as cheap labor contributed to cheap goods. But this dynamic is becoming less powerful, as factory costs in China are climbing on the heels of higher energy costs and input costs. These price pressures stemming from China are not necessarily enough to push global inflation materially higher, but they come at a time when the prices for other raw goods – like lumber, steel, oil, copper, etc. – are already climbing.4
Retirement Mistakes to Avoid During Times of Uncertainty – While we can’t predict or control the future of the market, it is possible to stay focused on actions that can help guide your future investments. There are common mistakes and habits that we believe can help some investors succeed while others fail. Don’t fall prey to common investing mistakes!
To help you understand some of these mistakes and how to avoid them, we have created the guide, 8 Retirement Mistakes to Avoid.5
In this guide, we provide our thoughts on what we believe are 8 of the biggest retirement mistakes investors should avoid. If you have $500,000 or more to invest and want to learn more, click on the link below:
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