Top news articles for financial advisors and personal finance
Week of 6/6
This week's recap focuses on investments during high inflation, the decline of mortgage applications and worsening inequalities aggravated by the pandemic.
Which Stocks Do Best During High Inflation? (Derek Horstmeyer, George Mason University’s Business School)
We’ve all been told that when high inflation strikes, it’s best to put money in real estate. However, a recent study showed that materials and energy industries were the best bet. Read more to learn about which industries performed the best and which performed the worst on average during high inflation.
How to Hedge Your Clients’ Portfolios Against Inflation (Allison Kade, ThinkAdvisor)
In addition to certain stocks, some asset classes have been shown to have higher yield during inflation. Examples of these include treasury inflation-protected securities equities and cryptocurrency. Read more about what the pros and cons of these asset classes are and how investment strategies of using these asset classes can be incorporated into your clients plans.
Mortgage-Application Index Falls to Lowest Level in 22 Years (Orla McCaffrey, The Wall Street Journal)
Mortgage applications fell to the lowest rates in 22 years. “Applications fell 6.5% in the week ended June 3, the fourth consecutive week of declines… Refinance and purchase activity fell 6% and 7%, respectively.” Read more about what this slow down can be attributed to.
CEO, Worker Pay Gap Widened During Pandemic, Study Says (Karen Demasters, Financial Advisor Magazine)
Despite low-wage workers making the most sacrifices during the pandemic, their wages did not keep up with inflation. Conversely, we saw CEO compensation soar during this time period. Read more about how much this gap widened during the pandemic.
Black-White Wealth Gap Getting Worse, 160 Years of U.S. Data Show (Catharina Saraiva, Financial Planning)
Data shows that the pandemic widened the Black-white wealth gap by increasing wealth concentration. Read more to learn about what led to this widening of the gap and what policies can help minimize the gap.