In this week’s Steady Investor, we unpack timely headlines and market indicators that could shape your next financial move—such as:
Why the Market is Increasingly Focused on U.S. Treasury Bonds – Equity markets experienced pronounced volatility midweek, but it did not have to do with a breaking news story on trade or anything related. It was about government bond yields, which surged on the back of tepid investor demand. A poorly received auction of 20-year Treasury bonds intensified concerns about the government’s growing debt load, pushing the 30-year yield to its highest point in over a year. At the heart of the issue is the rising volume of federal borrowing required to finance widening deficits—an increasingly visible stress point for markets.As the supply of Treasury bonds climbs to finance rising spending, investors have been watching auction markets closely to gauge how new issuance would be received. Somewhat muted demand signaled unease about how much more the market can absorb without higher yields. And that repricing spilled over into equities, where all major indexes posted notable losses.Beyond bond supply, inflation worries remain front of mind. Companies and consumers are signaling pressure from rising prices and policy uncertainty, and retailers have begun flagging weaker discretionary spending and cautious consumer sentiment. In some investor’s minds, this combination raises the possibility that the economy could face both slower growth and persistent inflation in the months ahead, which is another set of forces that could push Treasury bond yields higher.1
Don’t Let Fear Derail Your Retirement
Trying to time the market might seem like taking control—but it often leads to costly mistakes. Selling during downturns means locking in losses and missing the recovery that follows. This common behavior can significantly reduce your retirement savings over time.
For more insights, we recommend downloading our free retirement guide, “How Market Timing Can Affect Your Retirement Plan2,” which reveals:
If you have $500,000 or more to invest and want to learn more, click on the link below to get your free copy:
Download Zacks Guide, “How Market Timing Can Affect Your Retirement Plan.”2
The Tax Bill Passes the House. What’s In the Bill and What’s Next – In a narrow vote, the House of Representatives passed a far-reaching tax-and-spending bill that combines a series of longstanding fiscal priorities into a single legislative package. The bill extends and expands upon earlier tax cuts, while introducing significant reforms to federal entitlement programs. Though the measure cleared the House, it now moves to the Senate, where it is expected to undergo changes ahead of a potential vote later this summer.At the center of the bill are provisions to extend individual income tax cuts passed in 2017, to broaden deductions for families and workers, and to introduce new exclusions—such as those for tips, overtime pay, and Social Security income. The legislation also modifies the state and local tax (SALT) deduction by lifting the cap to $40,000, with phaseouts at higher income levels. On the corporate side, the bill makes modest adjustments to multinational tax rules and includes a new levy on outbound remittances.
Initial estimates suggest the package could add approximately $2.7 trillion to the deficit over ten years absent faster economic expansion, which again speaks to the concern raised above regarding bond markets. Indeed, markets are increasingly sensitive to fiscal risks, and the combination of rising deficits, sticky inflation, and ongoing Treasury issuance may continue to put pressure on long-term interest rates.3
The Coming $50 Trillion Wealth Transfer – Much has been made of the coming multitrillion-dollar “Great Wealth Transfer” from older Americans to younger generations. But before that intergenerational handoff takes place, a significant share of assets will first be passed between spouses—most often from husbands to wives. According to a recent study, roughly $54 trillion will change hands through inter-spousal transfers between now and 2048, with over 95% of that wealth ultimately going to women.This pattern reflects both demographic realities and longstanding household financial dynamics. Women tend to outlive men, and in many older households, men have historically handled most financial planning and decision-making. This dynamic creates risks if only one spouse is well-versed in managing investments, bills, and estate matters. In our view, the optimal path in any household is for both partners to be part of the planning process, to ensure broad financial literacy and a smoother transition when a spouse passes away.4
The Hidden Danger of Trying to Time the Market – Market ups and downs can trigger impulsive decisions—like trying to time the market perfectly or selling in a panic—that can seriously undermine your retirement goals.
Before you make any big moves, we recommend downloading our free guide, “How Market Timing Can Affect Your Retirement Plan5.” This guide helps investors recognize common emotional pitfalls and provides actionable strategies to stay focused on your long-term success. Inside you’ll learn:
If you have $500,000 or more to invest and want to learn more, click on the link below to get your free copy:
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