January 2022
The Fed rate-hike conversation comes back since the last rate hike was in 2018. As such, stocks, particularly value stocks, tend to outperform fixed income. When rates increase, sectors that usually do well are financials, energy and health care. When the Fed raises rates, this usually indicates the economy is strong with high inflation which benefits stocks. However, stocks increase volatility or drop when the Fed talks about the hikes. We believe it is an opportunity to rotate from overvalued stocks to undervalued stocks and a buy opportunity for long-term investors.
Full story: MORNINGSTAR
If you are looking for a safe inflation hedge with a decent interest rate, you may want to look into the Series I bonds issued by the US Treasury. The interest rate released last November was 7.12% for six months. The interest rate will be indexed twice a year every May and November based on inflation. The interest is compounded semiannually and is exempt from state and local income taxes, not the federal tax though.
Read more: TreasuryDirect
Scammers stole $14 billion in crypto in 2021. Cryptocurrency scammers are becoming more creative and sophisticated. They usually use a very attractive rate of return to catch your interest and may distribute gains to you at the beginning of your investment before you lose all your principal. If it is too good to be true, you will need to pay extra attention and perform cautious due diligence to safeguard your hard-earned money. And always ask how to get your money back before you put any in.
Full story: NextAdvisor
Financial Wellness Month is observed throughout January and was created to remind us to pay closer attention to our financial wellbeing. It is a good habit to set our financial goals and start or review our plan at the beginning of the year. Also it helps us feel grateful and appreciative of what we have accomplished and how we can do better in the new year.
Full story: Forbes