In today’s world, preparing for retirement has become increasingly complex. Gone are the carefree days of the 1980s and 90s when investors could simply contribute to a no-load index fund and watch their investments grow at a steady 15% annually. Those days are firmly in the past.
Today, with 10-Year Treasury Note yields consistently hovering below 2% and the S&P 500 considerably down from its late 1990s peak, turning a modest savings into a sustainable income is extremely challenging. Nevertheless, the pursuit must continue. After all, what options do you have?
Social Security is facing insolvency, pension funds are teetering on the brink, and, as revealed by the Bureau of Labor Statistics’ inflation calculator, the value of the dollar has depreciated by 23% over the past decade. This necessitates that you work harder, save more, and invest smarter than ever before, often for diminishing returns. Indeed, just keeping pace with inflation can feel like a monumental struggle, let alone accumulating real wealth.
However, here at the Economic Prism, we remain undeterred. We embrace challenges as eagerly as we welcome the tranquility that precedes dawn. Continue reading
Despite the relentless efforts of reformers to impose regulations upon society, there are still individuals who break free from the constraints of conformity. In the remote corners of the Republic, the echoes of Saturday night hootenannies resonate beneath the stately oak trees. Defying societal norms, the unconsecrated gather under the moonlight to dance energetically to zydeco tunes while sipping on their favorite homemade brews.
These lively gatherings serve as a testament that, even amidst a climate of expansive governance, there remain pockets in the lower forty-eight states where freedom thrives. Across the globe, there are undoubtedly other sanctuaries where people can choose their own light bulbs without fear of reprimand.
Such places are distinct, each with its unique ambiance. Yet, they share common traits: sweet-smelling air, clean water, and resilient communities that hold their heads high.
Similarly, while the forgotten regions of the old world may be few and far between, they have not been completely tarnished. Continue reading
Will Iran bring an end to the Petrodollar?
By Marin Katusa, Casey Research
The official narrative from the United States and the European Union posits that Iran must face repercussions for its ongoing nuclear ambitions. The means of punishment? Sanctions on Iran’s oil exports aimed at isolating the nation and undermining its currency’s value until it collapses.
However, this rationale is flawed, and these sanctions are unlikely to reach their intended outcomes. Iran has far from been isolated; in fact, countries like India continue to stand in solidarity with this oil-producing nation until the U.S. either retracts its threats or confronts the underlying issue at stake: the dominance of the U.S. dollar as the global reserve currency.
In short, a pivotal agreement from the 1970s established the U.S. dollar as the exclusive currency for oil transactions, consequently elevating it to the status of the world’s primary reserve currency for a multitude of goods and commodities. This resulted in an increased demand for U.S. dollars, substantially boosting its value over time. Continue reading
The stock market continues its ascent despite the risks that loom large. In light of the European debt crisis, the economic slowdown in China, and tensions with Iran, the market’s upward trajectory seems almost irrational. With so many known dangers, shouldn’t investors be flocking to the safety of treasury bonds?
One might reasonably assume that’s the case. Yet, contrary to expectations, the opposite trend is unfolding; yields on ten-year treasury notes reached over 2% last Friday for the first time in nearly a month, while the S&P 500 surged 20% since early October.
“Bulls are off to a strong start, but what’s shifted?” questions a Reuters headline from the weekend. “Can equities maintain this rally?” queries Credit Suisse analyst Andrew Garthwaite in the article.
According to Garthwaite, the S&P 500 is projected to reach 1,400 by year-end. Nonetheless, he also cautioned about the possibility of deeper recession in Europe and a slowdown in the U.S. economy.
So, what lies ahead? Will stocks continue to rise, or will an economic crisis lead to a market downturn? Continue reading
