Why plan sponsors need to prepare for a new reality.
There are several varieties of inflation: cost-push inflation, which can derive from a number of factors, including higher commodity prices or wage-price spirals; demand-pull inflation, where excessive aggregate demand causes shortages and pushes up prices; and monetary-driven inflation, where governments increase the monetary supply in attempts to devalue their currency and manage their fiscal obligations. […]
More and more institutional investment managers are expecting the worst. They believe corporate earnings will decline, U.S. economic growth will slow and the European debt crisis will spill over to other areas of the market, this according to a survey by Northern Trust. Survey respondents also see U.S. equities as undervalued, but see investment opportunities […]
Originally from our sister publication, Advisor.ca. In the months following Lehman Brothers’ implosion, investors stampeded into bonds, with U.S. Treasuries the issue of choice. Since then, market watchers have repeatedly warned of an impending slaughter, as interest rates would eventually have to rise. While that rise may be inevitable, it is not coming any time […]
Anyone collecting—or administering—an indexed pension plan should be keeping tabs on the consumer price index, but the latest reading could also have an impact on investment decisions.
There was some disconcerting economic news out of the U.S. this morning, with job growth stagnating and inflation on the rise. The number of Americans applying for unemployment benefits crept back above the 400,000 last week, hitting a four-week high of 408,000, according to the Labor Department. Applications have been above 400,000 for 18 of […]
Originally from our sister publication, Advisor.ca. Unprecedented geopolitical and economic changes have left a trail of destruction, but they’re also breeding new investment opportunities around the world. A panel of investment pundits discussed where those opportunities lie and how to capitalize on them at Franklin Templeton’s 2011 Investment Forum, in Toronto. Discussion rarely strayed far […]
Originally from our sister publication, Advisor.ca. Fears of a September interest rate increase were partially allayed this morning, when StatsCan reported lower-than-expected inflation for the month of June. The overall inflation rate for the 12 months ended June 30 was 3.1%, down from 3.7% for the year ending May 31. More importantly, the core inflation […]
Are we caught in a liquidity trap?
Despite showing a marginal increase in personal income, consumer spending in the U.S. remains stalled as inflation continues to gnaw away at income gains. Chris Christopher, senior principal economist at Lexington, Mass.-based IHS Global Insight, expressed concern over the dwindling consumer spending pattern in the U.S. in a recent commentary on personal income and consumption […]