What if the Fed doesn’t cut interest rates this year?

Earlier this year, many investors were convinced the U.S. Federal Reserve was on track to reduce interest rates four times by the end of 2024. Back then, it struck me as wishful thinking. Today, given higher-than-expected inflation, I think it’s even more unlikely. I believe there’s a strong chance we will get no rate cuts at all this year — and that markets should be fine without them.

To be fair, I should note that not everyone at Capital Group holds this view. As is often the case, we have multiple viewpoints on the investment team and among our economists. That’s the heart of The Capital System.^TM

For some investors who have been eagerly awaiting a rate cut, this may sound akin to canceling Christmas. However, if the Fed decides to stand pat it’s not necessarily a bad outcome, depending on the reason. In my view, there are three solid reasons to keep the federal funds rate right where it is throughout 2024.

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How Much Car Insurance Do You Need?

Every state has a minimum amount of car insurance you must buy to satisfy financial responsibility laws. Liability insurance is the main mandated coverage. It covers damage and injuries you cause to others in an accident.

The most common minimum limits for liability are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for physical damage. But your state’s requirements may be higher or lower. The key to figuring out how much car insurance you need is knowing your state’s requirements and examining your specific situation.

How Much Car Insurance Do I Need?

Beyond what is required by state car insurance laws and your lender, you need enough car insurance to pay for injuries, property damage and lawsuits that may arise from an accident if you don’t have enough savings to pay for them otherwise. And even if you do have the savings, can you afford to spend it all on a car accident? If you’re like most people, the answer to that question is no.

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Donor-Advised Funds: A Popular Tax-Advantaged Way to Give to Charity

A donor-advised fund may sound like something that’s only for the ultra-wealthy, but it’s actually accessible to anyone who makes charitable contributions. The donor-advised fund is one of the most tax-efficient ways to donate money to charity, which has helped it become the fastest-growing charitable giving vehicle in the U.S., according to Fidelity Charitable.

A donor-advised fund is a charitable-giving account that allows a donor to provide grants to a charity over a period of years. They can be relatively inexpensive to create and maintain, and a donor-advised fund offers donors some ability to manage their tax situation through giving. The fund can also be invested, so it can grow while you’re deciding which charities to support.

Here’s how a donor-advised fund works, why it may be an attractive option for giving and some key benefits it has over a charitable trust.

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The way Americans Buy and Sell Homes is about to get Turned on its Head

An earth-shattering, multibillion-dollar antitrust ruling against the National Association of Realtors late last year led to a settlement on Friday that will loosen the powerful trade group’s stranglehold on America’s housing market. The $418 million settlement with a group of homebuyers is expected to take effect sometime around July, pending a judge’s approval. It would transform a number of rules and guidelines set by the NAR that critics say have kept housing prices artificially inflated.

The TL;DR: 6% commissions, split between the buyer’s and seller’s brokers, will no longer be the norm. Agent commissions are expected to fall — in some cases, dramatically — because they will be competitive and negotiable, and sellers will be able to shop around for better rates. And other broker tactics that critics say are anticompetitive, such as a rule that made sellers’ agents set compensation for buyers’ agents, will be prohibited.

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3 Mistakes Investors Make During Election Years

Investing during an election year can be tough on the nerves, and 2024 promises to be no different. Politics can bring out strong emotions and biases, but investors would be wise to put these aside when making investment decisions.

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Effective Tax-Saving Strategies for Investors

We’re all investing to meet specific goals. What we want to achieve varies from one investor to another, but we can likely all agree we want more of our returns going toward our goals—and less to the IRS.

Here are 6 of my favorite strategies for lowering investment taxes.

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Home Renovation Facts and Statistics (2024)

Homeowners have developed a renewed interest in home renovation projects over the past three years. According to the Joint Center for Housing Centers of Harvard University (JCHS), home improvement project spending increased from $328 billion in 2019 to $472 billion in 2022, with an estimated 2024 spending of $485 billion. This article will explore the latest industry reports and findings on how home renovation has evolved, statistics for the most popular projects, and the future of residential investments.

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Top Geopolitical Trends in 2024

Despite reasonably favorable earnings and falling inflation, markets are likely to face headwinds in 2024, from geopolitical tensions around the world. Over 50% of the world’s population will go to the polls this year. Fortunately, market volatility resulting from such uncertainty is often short-lived and rarely requires any change in investment strategy, for the long-term investor. This piece details what we, investors, and the world are watching.

Top Geopolitical Trends in 2024

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2024 Planning and Wealth Management Outlook

Investors likely face turning points in interest rates and the economy in 2024. Manage stress and uncertainty by broadening the lens to focus on personal goals and wealth plans.

In 2024, investors will likely face a turning point in interest rates, inflation, and potentially the economy. This could lead to short-term stressors emotionally and in the market and economy. Our theme for 2024, and in any year with regard to planning and wealth management, is to widen the lens. Have the discipline to look at the big picture, not just the short-term details. And have a plan based on your personal goals and time horizons.

For 2024, here are three themes to consider in wealth management plans:

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What’s Right with the World

A daily diet of negative news can lead even the most experienced investors to lose conviction in their long-term investment plans.

Bad news often overshadows more favorable events. Even after the U.S. avoided a recession and the inflation picture brightened in 2023, many Americans remain downbeat about the economy and markets.

With wars in Ukraine and the Mideast, simmering U.S.-China tensions and a contentious U.S. presidential campaign underway, it is understandable that investors may be anxious. Yet positive trends across technology, health care and other areas are transforming lives and driving opportunity for companies and patient investors. Here are five reasons we’re feeling confident about the future.

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