The Consumer Confidence Index fell from 103.2 in May to 98.7 in June. In a consumer-driven economy, the confidence of those consumers is crucial for spending. If consumers feel confident about the economy, they tend to be more willing to spend. If consumers are pessimistic about the economy, they are more likely to save and pass on large discretionary purchases such as travel, cars, appliances, and even homes. It is yet another indication of a dramatic turnaround in the outlook for the economy since the beginning of the year. Forbes
Fed Still Expected to Aggressively Hike Rates: Federal Reserve Bank of Cleveland President, Loretta Mester, said if economic conditions are the same in July, then she would support a 75 basis point hike in the short-term rate. Mester is a voting member of the Federal Open Market Committee (FOMC) for setting rates. She is also considered a moderate which shows that aggressive rate hikes have broad support at the FOMC. CNBC Fed chair, Jerome Powell, stated this week that he felt raising rates too high and causing a recession was the lesser evil of not combating inflation and letting high inflation become entrenched. WSJ
Financial Planning Corner:
How the Oldest People in the Only Blue Zone in America Make Their Money Last: Blue Zones are the areas of the world with high concentrations of people living past 90 years old with few chronic illnesses. The only Blue Zone in America is centered around the Seventh Day Adventists located near Loma Linde, California. If they are living that long, how are they making their money last? The first surprise is that most of them don’t worry about outliving their money. Since they are surrounded by people they see living longer, they tend to think about finances very early in life and start planning. They save diligently and invest in stocks, bonds, 401(k) plans, annuities, real estate, etc., and often work with financial advisors for assistance (I was happy to hear that!). Due to their good health, they also tend to work well beyond the average American retirement age. Lastly, as a group, they are quite frugal which is a trait among those who live in Blue Zones across the globe. At RSWA, we run financial projections for clients to plan for long lives, often to their early or mid-90s. For some clients, longevity runs in their family so we extend the age further and plan accordingly. If you have questions about your financial projections and longevity, reach out to your financial advisors for more info. Next Avenue Blue Zones Project National Geographic – Blue Zones
Quick Hits for the Week (With a Few for the Fourth of July Weekend):
- The Bug Bite Thing is a new way to treat mosquito and bug bites by sucking the saliva/venom out of the bite. Reviews seem to be good, so I’m going to give it a try: CNN
- It is estimated that vaccines averted 20 million deaths globally: The Economist
- Big Tech is pouring money into carbon removal technologies to combat climate change: CNBC
- In one of the most fascinating stories I’ve come across recently, a well-preserved 30,000-year-old frozen baby mammoth was found in Canada: CBS
- Your body’s circadian rhythm helps drive your immune system: Axios
- Here is a Fourth of July Quiz for you. I scored 31 out of 45 (I did horrible in Round 2!): QuizTriviaGames
Cold Therapy is Hot: I’ve started reading up on cold therapy and the potential health benefits for the body and your mood. The act is pretty basic, you fill up a tub or barrel with cold water and ice, get the water between 50-59 degrees and then hop in for 3-10 minutes. Studies are showing it lowers inflammation, boosts your immune system, improves circulation, improves your mood, and the list goes on. I haven’t taken the plunge yet (pun intended) but may give it a shot after a hard workout or a long hot day working in the yard. A very cold shower may have a similar effect but may not have as strong a positive response. One last thing, cold therapy can cause cardiac stress, so check with your doctor before trying it. Have any of you tried it, and, if so, did it work? HealthFitnessRevolution Healthline
RSWA Webinar Series - Fritz Meyer: Our good friend Fritz returns next month! With all that has happened in the markets since Fritz presented in January, we thought the timing was right for an update. So mark your calendars for Thursday, July 21st at 4:30 PM. An invitation will be going out soon. Be sure to share it with friends and family who may want to listen in.
Fourth of July Trivia Fact: Presidents John Adams and Thomas Jefferson were fellow revolutionaries and then became bitter political rivals. They were the last surviving members of the original patriots and they both died within a few hours of each other on Independence Day, July 4th, 1826.
Enjoy the Fourth of July weekend and all the festivities.
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