There will be an overview of the status of our economy, the stock market and fixed income on Friday, July 22 at 11:30 a.m. in the multi-purpose room at Malibu City Hall.
This presentation will consist of easily comprehendible charts shown on a large screen that cover all pertinent data.
The market trends are obvious and very concerning.
Although employment growth is mildly sub-par, inflation-adjusted gross domestic product (GDP) growth since the last recession is only two-thirds of what used to be normal. Short-term interest rates are at historic lows, debt as a percent of GDP is at an all time high and corporate tax rates are not internationally competitive.
The Federal Reserve has made the stock market “the only place to invest,” but also the most risky. There are major structural problems in our economy that cannot be taxed away.
All investment success depends on a thriving economy unless you plan on shorting the economy. A conservative investor can’t expect double-digit gains, but the trends suggest some investment possibilities. Thus, the performance of various California municipal bond funds (closed- and open-end and ETFs) along with the ten-year treasury interest rate (as a reference) will be shown on a chart along with some other alternatives.
Since this will be a discussion, questions and comments are important.
Kal Klatte