Financial markets have reacted in shock to the Federal Reserve’s strengthened vow to continue tightening of monetary policy to fight high inflation. The S&P 500 has declined 10.5% over the past month and the average interest rate on a 30-year mortgage loan has increased to 6.29% from 6.02% in only one week, according to Freddie Mac. A year ago, the average rate for a 30-year loan was 2.88%.
Federal Reserve Chairman Jerome Powell said this week that fighting inflation will be painful and that he doesn’t know if tighter monetary policy will lead to a recession.
But what does all this mean to you? Andrew Keshner has advice on how to brace yourself for high interest rates.
Beth Pinsker explains how inflation and a possible recession can affect you as an individual.
Alessandra Malito has suggestions on what retirees and near-retirees should do during a period of economic turmoil.
The housing has already been transformed
Home prices in San Francisco declined 3.4% during August.
Andy Konieczny – stock.adobe.com
Freddie Mac has provided startling statistics about the mortgage lending market, underscoring a swirl of countering forces as potential home sellers and buyers are driven out of the market.
One sign of a dramatic turnaround is that in August, home prices showed their largest decline since 2011.
A slowdown in the home financing market is especially difficult on non-bank mortgage lenders, who began laying off staff months ago. Aarthi Swaminathan interviewed Rocket
RKT,
CEO Jay Farner, who described steps the company is taking to stay afloat.
Don’t sell into a declining market
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Conventional wisdom is that rising interest rates are bad for stocks because bonds become more attractive as yields go up. Mark Hulbert shows why this reasonable assumption has turned out to be wrong for long-term investors, based on decades of market data.
More from Hulbert: If the market passes this test, stocks will be poised to move higher
The case for energy stocks
Oil prices fell dramatically on Friday, speeding up the retreat for West Texas Intermediate crude
CL.1,
to just under $80 a barrel from its 2022 intraday peak front-month contract price of $130.50 on March 7. Despite that decline, earnings estimates for the energy sector have been increasing. That and other factors underline what may be a good case energy stocks if you are a long-term investor.
Another group of stocks for a changing U.S. economy
Rockwell Automation can benefit as companies increase manufacturing capacity in the U.S.
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Various shortages during the coronavirus pandemic have highlighted a need for various industries to burnish their supply chains. Michael Brush lists 17 stocks of companies that can benefit from the reshoring trend.
Financial considerations for people who continue to work past 65
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Putting off retirement has an obvious advantage — you continue to get paid. But there can ben other financial consequences. Here’s how working past the age of 65 can affect Medicare and Social Security.
To tip or not to tip… or how much to tip
MarketWatch illustration
Quentin Fottrell — the Moneyist — helps a couple who have a disagreement about how much they should tip their housekeeper.
Italian elections and money
Here’s how concerns over controversial elections in Italy can affect financial markets.
More about Europe: Pound and euro slump as dollar index surges to highest since mid-2002
Life after retirement
Roger Federer announced his retirement from tennis, but already had post-retirement work lined up.
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When famous athletes retire from their sports, they often have plans for new careers in place. Here’s how you can prepare for your own retirement, stay sharp and be ready if you decide to go back to work.
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