A now record-setting run of U.S. economic growth enters its 121st month on Monday, sustained by a decade of low interest rates and massive Federal Reserve intervention that helped put 22 million people back to work. To read the full article in Reuters, click: As U.S. Expansion Notches Record, Recovery May Have Only Just Begun.
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More than a third (35 percent) of employers intending to hire temporary workers expressed concerns over the availability of agency workers with the required skills—with the construction sector expecting the largest crunch in this area—while almost half (47 percent) of employers said they were using agency staff to manage uncertainty. To read the full article in People Management, click: Falling Economic Confidence Now Affecting Hiring Decisions, Says Survey.
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One rule of thumb that’s commonly incorporated into financial plans assumes clients will have paid off their mortgage before entering retirement. Not only does it ease cash-flow concerns for initial retirement years, but it can also create a sense of calm as clients become debt free. To read the full article in FinancialPlanning, click: Mortgage Advice it Might be Best to Ignore.
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Business economists have grown a little less optimistic about the outlook for the U.S. economy as a result of U.S. trade policies. The National Association of Business Economists reports that its survey of 45 professional economic forecasters now projects a median 2.8% growth in real GDP from Q4 2017 to Q4 2018, down from 2.9% three months ago. To read the full article in Think Advisor, click: A Mixed Outlook for the U.S. Economy.
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Lack of communication and trust has depleted 60 percent of family fortunes, according to a recent white paper from BNY Mellon’s Pershing entitled “Parent Trap: Avoiding Common Multigenerational Wealth Planning Pitfalls.” On the other hand, poor financial planning accounts for three percent of bankrupted family wealth. To read the full article in Financial Advisor, click: Lack of Communication Killing Family Wealth.
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Client confidence has climbed and that rosier outlook for the economy and the stock market is propelling robust flows into equities and retirement accounts, advisors say. Allocations to stocks strengthened sharply, according to the latest Retirement Advisor Confidence Index—Financial Planning’s monthly survey of wealth managers—and helped to support further improvement in business conditions for the investment industry. To read the full article in FinancialPlanning, click: Rosier Client Confidence Drives Heavy Inflows into Stocks.
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Maybe I am reading too much into it, but l was struck by how the Ruth’s Chris Steak House in Lafayette, La. was packed on a mid-March Tuesday night. A year ago when I ate there, I was one of maybe a half-dozen people in the restaurant. Jeff K. Davis, CFA, Managing Director of Mercer Capital’s Financial Institutions Group, discusses how people’s reaction of being tight-fisted vs. loosening-up can change quickly based upon perceptions. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Reading the Tea Leaves at Ruth’s Chris Steak House in Lafayette. This article is…
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Economic growth in the U.S. registered a frail 0.5% in the first quarter; the worst showing since Q1 of 2014. A strong dollar and a drive by businesses to draw down inventories contributed, as did slow investment due to low oil prices. However, Lucia Mutikani discusses that analysts are optimistic the pace will pick up as some stifling factors fade in coming quarters. To read the full article in Reuters, click: U.S. Economy Stalls in First Quarter as Activity Weakens Broadly.
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The impact of hoarded cash in valuations The impact on business valuators in this economic and political climate is largely observational. Observational because any forecasted financial information installed in any formula must include the impact of managements’ sources and uses of “hoarded cash.”
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Fed Buying Is Having Profound Implications. Bond Vigilantes Have Been Selling Heavily and May Continue. That Means We Still We Won’t See Much of an Impact on Interest Rates. Paul Santos at Seeking Alpha claims you don’t need to worry about the bond vigilantes anymore. I, personally, have always been a big fan, and think they will return. But hey: This is Mr. Santos’ opinion piece, not mine, so I’ll let him cut to the chase. Santos doesn’t claim they’re in hiding. He simply claims they’re gone. Santos asks: “So when did the mass killings take place in the U.S.?…