What Is A Black Swan Event?

Black swan populations are small, and it is rare to come across one. The term “Black Swan” has been adopted my financial market participants to mean rare and unpredictable events, typically negative ones. Black swan events may have severe consequences, and can lead to major losses in the markets and harm for the economy.

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The Economic Impact of Higher (and Lower) Rates

Over the last several years, many of our clients who prefer to hold significant amounts of cash for unplanned emergencies or near-term purchases–as we frequently recommend–have benefited greatly from higher interest rates.  After many years of ultra-low interest rates, these clients have finally been rewarded with respectable returns on their cash holdings.

Others seeking to purchase a house or car were not so fortunate.  For these individuals, borrowing costs often made financing far less attractive and limited buying capacity, given that inflation had already taken a toll on pricing.

Now that the Fed appears poised to begin a rate cutting cycle, we thought it may be interesting to take a brief look at how interest rates affect the economy.  As you will see, the impact of interest rates is quite extensive:

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How Elections Move Markets in 5 Charts

How much do elections impact the stock market and portfolio returns? Should elections even matter to long-term investors in the first place? These are the questions investors and financial professionals are facing as we approach November 5.

To provide answers, we’ve analyzed more than 90 years of market and election data and identified five ways that elections influence stock returns and investor behavior.

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Social Security Online Applications

You can do much of your Social Security business on the website. Our online applications make it easy and convenient to apply for benefits from your computer, tablet, or mobile device. You don’t need to make an appointment or visit an office. That’s independence!

When you start your application online, you’ll be directed to create or sign in to your personal my Social Security account. If you’re unable to create an account, you can continue the online application. We’ll contact you after we review your information.

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What Kind of Retiree Will You Be?

When it comes to planning for retirement, determining your personal identity—and associated goals—is an important (and often overlooked) step.

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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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