Risky business: Here are 8 costly retirement mistakes to avoid

Timing: the risk you’ll retire during a bear market. “If your expenses are $60,000 a year and you have $60,000 in a money market, who cares if the market goes down?” said Estes, founder and CEO of Estes Financial. “This is a huge risk, as retirement is becoming longer,” Stratton said. Investor behavior: the risk you’ll dump stocks in a temporary downdraft.


Timing: the risk you’ll retire during a bear market. “If your expenses are $60,000 a year and you have $60,000 in a money market, who cares if the market goes down?” said Estes, founder and CEO of Estes Financial. “This is a huge risk, as retirement is becoming longer,” Stratton said. Investor behavior: the risk you’ll dump stocks in a temporary downdraft.
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Risky business: Here are 8 costly retirement mistakes to avoid

Generating enough income in retirement calls for managing risks to that flow of cash. Retirement savers can’t do that unless they know what those risks are. Financial planners identify these eight prime retirement income risks and provide guidance for reducing them.

1. Timing: the risk you’ll retire during a bear market.

Dallas-based certified financial planner Scott Stratton offers this scenario: The market plummets 30 percent the year that you retire and you start withdrawing 4 percent annually from what was previously a $1 million portfolio. “In 12 months, your portfolio falls to $660,000, and 4 percent is no longer a sustainable withdrawal rate,” said Stratton, president of Good Life Wealth Management.

One remedy suggested by Fort Worth, Texas, CFP Tim Estes, is to have a robust cash emergency fund to tide you over without tapping retirement accounts. “If your expenses are $60,000 a year and you have $60,000 in a money market, who cares if the market goes down?” said Estes, founder and CEO of Estes Financial. “Because it does come back.”

2. Inflation: the chances that inflation will erode your purchasing power.

“This is a huge risk, as retirement is becoming longer,” Stratton said. “If inflation is just 3 percent, your cost of living is going to double every 24 years — and some costs, like health care, are growing at much more than 3 percent.”

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Estes recommends equities as an inflation counter. “You have to have some of your money in the stock market so you can get returns above inflation,” he said. With inflation running about 3.5 percent a year, a moderate portfolio returning 6 percent to 7 percent keeps up with inflation even after withdrawals, he says.

3. Longevity: the chance you’ll outlive your money.

Worries about outliving retirement savings are partly due to longer life expectancy, says financial planner Charisse MacKenzie, president of Saturn Wealth in Gilbert, Arizona. “Today we have a 1 in 4 chance of one person in a couple living to 95,” she said.

To mitigate this risk, MacKenzie suggests delaying claiming Social Security benefits until the maximum benefit is reached at age 70. “The longer you expect to live, the longer you should delay Social Security,” she said.

4. Interest rates: the risk you won’t be able to get adequate returns on safer debt investments.

Although rates are rising, current fixed-income returns lag well behind historical norms. This provides a potent challenge to people seeking retirement income. Estes suggests high-dividend stocks as alternatives to puny bond yields. “I’ve got investments that I think are relatively safe paying anywhere between 5 [percent] and 7 percent,” he said.

5. Investor behavior: the risk you’ll dump stocks in a temporary downdraft.

Left to their own devices, individual investors tend to sell low during bear markets. That is one reason MacKenzie suggests relying on a presumably more dispassionate professional money manager. “People are too emotional about their own money,” she said. “It’s wise to have someone handle it for them.”


Company: cnbc, Activity: cnbc, Date: 2019-02-28  Authors: mark henricks, izusek, getty images, peter cade, ramin talaie, corbis news, fatcamera, thanasis zovoilis, moment
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Malaysia’s consumer prices fall for the first time since 2009

Malaysia’s consumer prices fell for the first time in nearly a decade in January, on the back of lower fuel costs, but economists say deflation is unlikely to be sustained and would not lead to any change in monetary policy. The consumer price index fell 0.7 percent in January from a year earlier, the first decline since November 2009 when it fell 0.1 percent. The transport sector index fell 7.8 percent from a year earlier in January, data from the Statistics Department showed. The decline, howe


Malaysia’s consumer prices fell for the first time in nearly a decade in January, on the back of lower fuel costs, but economists say deflation is unlikely to be sustained and would not lead to any change in monetary policy. The consumer price index fell 0.7 percent in January from a year earlier, the first decline since November 2009 when it fell 0.1 percent. The transport sector index fell 7.8 percent from a year earlier in January, data from the Statistics Department showed. The decline, howe
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Malaysia's consumer prices fall for the first time since 2009

Malaysia’s consumer prices fell for the first time in nearly a decade in January, on the back of lower fuel costs, but economists say deflation is unlikely to be sustained and would not lead to any change in monetary policy.

The consumer price index fell 0.7 percent in January from a year earlier, the first decline since November 2009 when it fell 0.1 percent. A Reuters poll had forecast a drop of 0.2 percent.

Price pressures have moderated since the government withdrew an unpopular consumption tax in June 2018 and reinstated a narrower sales and services tax (SST) three months later.

Annual inflation in November and December was 0.2 percent, matching the rate in August when it hit a three-and-a-half-year low.

But the country’s central bank is not expected to cut rates as inflation was likely to pick up in the second quarter of the year, economists said.

January’s decline in the CPI index was driven mostly by a sharp drop in retail fuel prices, after a Malaysian government decision to switch to a weekly managed float mechanism and as global oil prices fell during the month.

“This is probably just temporary and once the base effects subside, we should expect prices to revert back upwards,” said Julia Goh, economist at UOB in Kuala Lumpur.

The transport sector index fell 7.8 percent from a year earlier in January, data from the Statistics Department showed.

The decline, however, was offset by higher prices of food, restaurants and hotels, and education.

The central bank has said Malaysia does not face serious deflationary pressures.

Headline inflation, which came in at 1 percent in 2018, was likely to average higher this year, Bank Negara Malaysia said last week.

“If external conditions deteriorate further, then there is room for monetary easing but that is unlikely to happen this year,” said Irvin Seah, senior economist at DBS in Singapore.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: goh seng chong, bloomberg, getty images
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The Fed is about to start public sessions on how it can improve policy

Federal Reserve officials will be hitting the road soon to learn how best to achieve their policy objectives and to communicate those moves to the public. Starting Monday in Dallas, the central bank will hold a series of “Fed Listens” events aimed at getting input from business leaders, community development pros and academics. Ultimately, the Fed plans to gather recommendations in a report to be presented in the first half of 2020. “The economy is constantly evolving, bringing with it new polic


Federal Reserve officials will be hitting the road soon to learn how best to achieve their policy objectives and to communicate those moves to the public. Starting Monday in Dallas, the central bank will hold a series of “Fed Listens” events aimed at getting input from business leaders, community development pros and academics. Ultimately, the Fed plans to gather recommendations in a report to be presented in the first half of 2020. “The economy is constantly evolving, bringing with it new polic
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The Fed is about to start public sessions on how it can improve policy

Federal Reserve officials will be hitting the road soon to learn how best to achieve their policy objectives and to communicate those moves to the public.

Starting Monday in Dallas, the central bank will hold a series of “Fed Listens” events aimed at getting input from business leaders, community development pros and academics.

There will be another session in Minneapolis in April then others at various venues around the country through rest of the year. Ultimately, the Fed plans to gather recommendations in a report to be presented in the first half of 2020.

“The economy is constantly evolving, bringing with it new policy challenges. So it makes sense for us to remain open minded as we assess current practices and consider ideas that could potentially enhance our ability to deliver on the goals the Congress has assigned us,” Fed Vice Chairman Richard Clarida said during a speech Friday in New York.

The comments come amid discussions about how the central bank can react to future downturns with its experience from the financial crisis in mind.

As the U.S. economy faced its worst danger since the Great Depression, the Fed responded with unprecedented aggressiveness: slashing its benchmark interest rate to near-zero, conducting a series of asset purchases that blew up its balance sheet to more than $4.5 trillion, and implementing several other measures aimed at pushing the economy out of its slump.

One area where those policies have come up short is in generating what officials consider a healthy level of inflation, which has stayed persistently below the Fed’s 2 percent target through the recovery.

Clarida said developing strategies to raise inflation expectations will be part of the review. In addition, he said the sessions will focus on labor market questions, other policies the Fed could use in the future as well as global issues and financial stability considerations.

“What I can say is that any refinements or more material changes to our framework that we might make will be aimed solely at enhancing our ability to achieve and sustain our dual-mandate objectives in the world we live in today,” he said.


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Fed should be vigilant about too-low inflation, Williams says

The concern about excessively low inflation is remarkable in the context of a U.S. unemployment rate of 4 percent, well below what most economists believe is sustainable in the long run. “I concur that we must remain vigilant regarding a sustained takeoff in inflation,” Williams said, citing his own analysis that showed low unemployment does in fact still exert upward pressure on prices. But unlike the 1960s, he said, inflation dynamics have changed so that even if prices surge temporarily, that


The concern about excessively low inflation is remarkable in the context of a U.S. unemployment rate of 4 percent, well below what most economists believe is sustainable in the long run. “I concur that we must remain vigilant regarding a sustained takeoff in inflation,” Williams said, citing his own analysis that showed low unemployment does in fact still exert upward pressure on prices. But unlike the 1960s, he said, inflation dynamics have changed so that even if prices surge temporarily, that
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Fed should be vigilant about too-low inflation, Williams says

The Federal Reserve needs to make sure that tight labor markets do not spark a sustained surge in inflation, but equally that inflation expectations do not get stuck too low, New York Federal Reserve Bank President John Williams said on Friday.

The concern about excessively low inflation is remarkable in the context of a U.S. unemployment rate of 4 percent, well below what most economists believe is sustainable in the long run. Traditionally, economists have found that when labor markets run hot, eventually inflation will as well.

That relationship may have changed, according to a spate of new research from within and outside of the Fed that some policymakers have used to justify the U.S. central bank’s new stance of “patience” on interest rates despite very low unemployment.

Williams made the remarks in response to a paper released on Friday that argued that though upward price pressures are currently muted, the Fed needs to guard against the possibility that low unemployment rates and rising wages could eventually spark higher inflation, as it did in the 1960s.

“I concur that we must remain vigilant regarding a sustained takeoff in inflation,” Williams said, citing his own analysis that showed low unemployment does in fact still exert upward pressure on prices.

But unlike the 1960s, he said, inflation dynamics have changed so that even if prices surge temporarily, that increase does not get embedded into inflation expectations, keeping inflation from rising sustainably above healthy levels.

Indeed, he said, inflation expectations are key to keeping inflation on track, and expectations are shaped in large part by experience. Inflation’s recent track record of riding well below the Fed’s 2 percent target is, therefore, concerning, he said.

“We must be equally vigilant that inflation expectations do not get anchored at too low a level,” he said. “This persistent undershoot of the Feds target risks undermining the 2 percent inflation anchor.


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Japan’s central bank says it’s ready to ramp up stimulus if a strong yen derails inflation target

Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank was ready to ramp up stimulus if sharp yen rises hurt the economy and derail the path towards achieving its 2 percent inflation target. “If (currency moves) are having an impact on the economy and prices, and if we consider it necessary to achieve our price target, we’ll consider easing policy,” he said. Kuroda made the remarks in response to a question by an opposition lawmaker on whether the BOJ had the necessary tools to


Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank was ready to ramp up stimulus if sharp yen rises hurt the economy and derail the path towards achieving its 2 percent inflation target. “If (currency moves) are having an impact on the economy and prices, and if we consider it necessary to achieve our price target, we’ll consider easing policy,” he said. Kuroda made the remarks in response to a question by an opposition lawmaker on whether the BOJ had the necessary tools to
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Japan's central bank says it's ready to ramp up stimulus if a strong yen derails inflation target

Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank was ready to ramp up stimulus if sharp yen rises hurt the economy and derail the path towards achieving its 2 percent inflation target.

But he said the BOJ would carefully weigh the benefits and costs of any further policy easing, suggesting that the hurdle for topping up stimulus would be high given how financial institutions’ profits have been hurt by years of near-zero interest rates.

“Currency moves could have an impact on the economy and prices, so it’s crucial we take into account these factors when guiding monetary policy,” Kuroda told parliament.

“If (currency moves) are having an impact on the economy and prices, and if we consider it necessary to achieve our price target, we’ll consider easing policy,” he said.

Kuroda made the remarks in response to a question by an opposition lawmaker on whether the BOJ had the necessary tools to boost stimulus to counter the pressure from a sharp yen rise.

The dollar received a mild lift versus the yen after Kuroda’s remarks. It stood little changed at 110.655 yen after dipping as low as 110.45 earlier in the day.

Kuroda repeated that possible monetary easing tools the BOJ could deploy included cutting short- and long-term interest rates, expanding asset buying or accelerating the pace of money printing.

“Whatever we do, however, we need to carefully balance the benefits and the costs of the step such as the impact on financial intermediation and market functioning.”


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Dollar slips on US-China trade hopes, Swedish crown sags

“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45. Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year. The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a


“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45. Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year. The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a
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Dollar slips on US-China trade hopes, Swedish crown sags

The dollar on Tuesday fell against a basket of other currencies as traders scaled back their safe-haven greenback holdings on optimism that a fresh round of talks between China and the United States would help resolve their trade conflict.

The dollar index hit a near two-month peak on Friday after last week’s set of negotiations in Beijing failed to result in a deal, although officials from both sides said the talks had produced progress on contentious issues.

“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. “The dollar should come under pressure as it loses some safe-haven appeal.”

The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45.

On Friday, it hit 97.368, which was the highest since Dec. 17. U.S. financial markets were closed on Monday for the Presidents Day holiday.

Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year.

Last week, the crown rose after Sweden’s central bank broke with growing caution among major monetary-policy makers, saying it would stick to its plan to raise rates in the second half of 2019.

The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a report showed inflation slowed in January.

Against the euro, it was headed for its biggest daily decline in more than 15 months. It touched 10.621, its weakest since September.

The euro appreciated against the dollar on trade optimism. It reversed earlier losses after data showed Italian industrial orders dropped 5.3 percent in December from a year earlier.

Euro zone bond yields, notably those of German bunds, fell amid the cloudy European economic outlook, weighing on the euro. When European Central Bank policymakers meet on March 7, they are expected to lower growth and inflation projections.

The euro was up 0.37 percent at $1.135, holding above a three-month low of $1.1234 set last week.

The single currency, however, fell against the British pound as data showed domestic workers’ salaries held at its fastest pace in a decade in late 2018.

The euro was 0.62 percent lower at 86.99 pence, while the pound was up 1.08 percent at $1.306. The sterling’s gains were limited ahead of British Prime Minister’s Theresa May’s meeting with the EU to find a way to get their Brexit deal through the UK parliament.


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China’s inflation slows in January, potentially pushing officials to step in, says economist

CPI eased due to a decline in food prices, wrote Dong Yaxiu, a statistics bureau official, in an analysis of the data. Meanwhile, producer inflation rose just 0.1 percent from a year ago, compared to a 0.2 percent rise expected by economists polled by Reuters. China’s December Producer Price Index — which measures price increases before they reach the consumer — had risen 0.9 percent on-year. While CPI remains at a “comfortable level,” Evans-Pritchard said in a note on Friday that the weak produ


CPI eased due to a decline in food prices, wrote Dong Yaxiu, a statistics bureau official, in an analysis of the data. Meanwhile, producer inflation rose just 0.1 percent from a year ago, compared to a 0.2 percent rise expected by economists polled by Reuters. China’s December Producer Price Index — which measures price increases before they reach the consumer — had risen 0.9 percent on-year. While CPI remains at a “comfortable level,” Evans-Pritchard said in a note on Friday that the weak produ
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China's inflation slows in January, potentially pushing officials to step in, says economist

China’s Consumer Price Index missed expectations in January coming in at 1.7 percent higher than a year ago, the National Bureau of Statistics said on Friday.

Economists polled by Reuters were expecting CPI to come in at 1.9 percent higher year-over-year. December CPI — a gauge of prices for goods and services — had risen 1.9 percent on-year.

CPI eased due to a decline in food prices, wrote Dong Yaxiu, a statistics bureau official, in an analysis of the data.

Meanwhile, producer inflation rose just 0.1 percent from a year ago, compared to a 0.2 percent rise expected by economists polled by Reuters. China’s December Producer Price Index — which measures price increases before they reach the consumer — had risen 0.9 percent on-year.

January marked the seventh straight month of slowing factory gate inflation, according to Reuters records.

The below-consensus inflation figures suggest that demand “remained sluggish” at the start of 2019, which may spur official action to support the economy, wrote Julian Evans-Pritchard, senior China economist at Capital Economics.

While CPI remains at a “comfortable level,” Evans-Pritchard said in a note on Friday that the weak producer price numbers are “a concern since these are highly correlated with profit growth in industry.”

He predicted Beijing will roll out measures, such as cutting benchmark lending rates, to ease financial pressure on industrial firms as factory gate inflation looks to deepen in the months ahead.

However, weak producer prices do not always feed through into the CPI due to the concentration of heavy industries in the PPI, said Sian Fenner, a senior economist at Oxford Economics. Weak oil prices recently weighed on PPI, she noted.

“We are still expecting the disparity between the two to continue,” she told CNBC.

The data comes amid a new round of U.S.-China talks in Beijing this week as the world’s two largest economies renewed efforts to reach a deal to defuse trade tensions.


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Headlines say there’s no inflation, but look at what’s getting more expensive

“Please stop telling me there is no inflation,” Peter Boockvar, chief investment officer Bleakley Advisory Group, said in a note on Wednesday after the consumer price index report. He pointed out that services inflation excluding energy has grown persistently with a 0.2 percent increase month-over-month and 2.8 percent year-over-year. The headline figure saw no change in January largely because cheaper gasoline offset the increases in other areas. Gasoline prices fell 5.5 percent last month afte


“Please stop telling me there is no inflation,” Peter Boockvar, chief investment officer Bleakley Advisory Group, said in a note on Wednesday after the consumer price index report. He pointed out that services inflation excluding energy has grown persistently with a 0.2 percent increase month-over-month and 2.8 percent year-over-year. The headline figure saw no change in January largely because cheaper gasoline offset the increases in other areas. Gasoline prices fell 5.5 percent last month afte
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Headlines say there's no inflation, but look at what's getting more expensive

“Please stop telling me there is no inflation,” Peter Boockvar, chief investment officer Bleakley Advisory Group, said in a note on Wednesday after the consumer price index report. He pointed out that services inflation excluding energy has grown persistently with a 0.2 percent increase month-over-month and 2.8 percent year-over-year.

The headline figure saw no change in January largely because cheaper gasoline offset the increases in other areas. Gasoline prices fell 5.5 percent last month after dropping 5.8 percent in December.

On the surface, the headline CPI number is showing that inflation is contained. But the core rate of inflation, which doesn’t consider energy and food prices because they fluctuate easily, has risen 0.2 percent for each of the past five months.

Another price increase that is essential to the average family is tuition. In January, college tuition and fees were higher by 2.9 percent on a year-over-year basis, while elementary and high school tuition was up by 4.4 percent.


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Worker wage gains are keeping up with inflation, and then some

Worker paychecks are showing their biggest gains since the recovery began a decade ago, and are more than keeping up with inflation. — Graphic by CNBC’s John SchoenThe trend comes amid a steadily rising level in gross average hourly earnings, which increased by 3.2 percent in January, right around the best levels of the recovery as well. The increase in real average hourly earnings was below 1 percent for two full years straight before November 2018’s 1.1 percent gain. January’s consumer price i


Worker paychecks are showing their biggest gains since the recovery began a decade ago, and are more than keeping up with inflation. — Graphic by CNBC’s John SchoenThe trend comes amid a steadily rising level in gross average hourly earnings, which increased by 3.2 percent in January, right around the best levels of the recovery as well. The increase in real average hourly earnings was below 1 percent for two full years straight before November 2018’s 1.1 percent gain. January’s consumer price i
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Worker wage gains are keeping up with inflation, and then some

Worker paychecks are showing their biggest gains since the recovery began a decade ago, and are more than keeping up with inflation.

Labor Department numbers released Wednesday show that real average hourly earnings, which compare the nominal rise in wages with the cost of living, rose 1.7 percent in January on a year-over-year basis.

A month ago, the increase was 1.3 percent. A year ago, the gain was just 0.7 percent. In all, the rise in inflation-adjusted hourly pay showed the best increase since July 2016.

— Graphic by CNBC’s John Schoen

The trend comes amid a steadily rising level in gross average hourly earnings, which increased by 3.2 percent in January, right around the best levels of the recovery as well.

“This is a welcome increase. It gives workers more purchasing power, but because the pickup has been in line with productivity growth and inflation, it has not added to inflationary pressures,” Cleveland Fed President Loretta Mester said in a speech Tuesday, before the real wage numbers were released.

Indeed, skeptics about the strength of the gain say wages have barely kept up with inflation, and for a while that was true.

The increase in real average hourly earnings was below 1 percent for two full years straight before November 2018’s 1.1 percent gain.

January’s consumer price index showed muted overall inflation pressures, but indicated that real average hourly earnings increased by 0.2 percent for the month. Real average weekly earnings rose 0.1 percent for the period, representing a 1.9 percent annualized gain.

For workers, that’s meant a better standard of living. At a policy level, the good news likely won’t trigger an immediate response from the Federal Reserve, though central bank officials likely are noticing the nascent wage pressures.

“They’re looking carefully at a bunch of labor market indicators to figure out how much slack is left,” said Bill English, a former senior staffer at the Fed and now a professor at the Yale School of Management. “It’s been a complicated thing because there’s been a flow of people back into the labor force who left the labor force, and that is great. But the question is how long that can go on, how long you get these substantial gains in payrolls month after month without generating pressure in wages and ultimately in prices.”

Payroll gains have averaged a robust 241,000 over the past three months.

Fed officials, though, have indicated they are going to take a pause in the rate-hiking cycle until they get a better feel for how economic conditions are unfolding.


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Bernstein: There is now a ‘strong case’ for gold over bonds, stocks

As recession fears rise, Bernstein is suggesting investors look to gold and gold mining stocks to reduce risk. The firm’s global quantitative trading strategy group on Monday sent a note titled “a strong case for holding gold.” “We show that from current equity valuations and from similar points in previous cycles gold and equities give more similar returns … [to] risk assets such as equities,” Bernstein said. Bernstein is tracking two key measures, both of which are at levels not seen since W


As recession fears rise, Bernstein is suggesting investors look to gold and gold mining stocks to reduce risk. The firm’s global quantitative trading strategy group on Monday sent a note titled “a strong case for holding gold.” “We show that from current equity valuations and from similar points in previous cycles gold and equities give more similar returns … [to] risk assets such as equities,” Bernstein said. Bernstein is tracking two key measures, both of which are at levels not seen since W
Bernstein: There is now a ‘strong case’ for gold over bonds, stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: michael sheetz
Keywords: news, cnbc, companies, case, debt, stocks, risk, equities, similar, bonds, inflation, bernstein, gold, note, global, temptation, strong


Bernstein: There is now a 'strong case' for gold over bonds, stocks

As recession fears rise, Bernstein is suggesting investors look to gold and gold mining stocks to reduce risk.

The firm’s global quantitative trading strategy group on Monday sent a note titled “a strong case for holding gold.”

“We show that from current equity valuations and from similar points in previous cycles gold and equities give more similar returns … [to] risk assets such as equities,” Bernstein said.

“A material shift in geopolitical risk and a near-record build up in government debt make other potential risk-free assets more questionable and also bring a temptation to create inflation, thereby further enhancing the case for gold,” the note added.

Bernstein is tracking two key measures, both of which are at levels not seen since World War II: global government debt and central bank buying of gold. The former “creates a temptation to manufacture inflation,” Bernstein said. The latter is a “trend that is likely to continue for as long as the US share of global GDP continues to decline,” the firm said.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: michael sheetz
Keywords: news, cnbc, companies, case, debt, stocks, risk, equities, similar, bonds, inflation, bernstein, gold, note, global, temptation, strong


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