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@theMarket: Fed Expected to Begin Interest Rate Cuts Next Week
By Bill Schmick,
03:50PM / Friday, September 13, 2024
After two years of monetary tightening, the Federal Reserve Bank is poised to begin loosening its policy. Is the event already priced in or will the stock market celebrate with new highs?   It may depend on how deep a cut the Fed is willing to make. In my opinion, in the long run it won't matter unless you are one of those day-to-day options traders who live or die based on the next trade. Nonetheless, in a market that may well hit a new high next week, what the Fed does and how it talks about future cuts will be important.   Some believe the Fed should cut one-half of a percent (50 basis points), while others are in the camp that it will only need a

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The Retired Investor: Fewer Babies Threaten Future U.S. Economic Growth.
By Bill Schmick,
04:37PM / Thursday, September 12, 2024
The fertility rate in the United States has fallen by 3 percent since 2022. That is a historic low and marks the second yearly decline in a row. How will that impact the economy?   In the simplest terms, if you have lower population growth then you will have fewer people producing goods and services. That will result in slower economic growth. But it is not the only impact. A shrinking workforce will also mean there are fewer people paying taxes.   In a country like ours that has seen decades of increased spending and higher debt, the question becomes who will pay this growing obligation.   As our deficits expand at an increasing rate, while the

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The Retired Investor: Precious Metals Normally Fall in September
by Bill Schmick,
04:22PM / Thursday, September 05, 2024
As one of the best-performing areas of the financial markets this year, gold and silver have been added to many investors' portfolios. And while every dip has been used as an excuse to buy, bulls should hold off a bit when making any new purchases.   The price of gold is up more than 20 percent and silver gained over 17 percent so far this year. Despite the sector's performance, there are many portfolio managers out there who won't touch precious metals and probably never will. "Too speculative," "impossible to analyze," and "we are not in the business of gambling" are all explanations I have heard through the

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