
Smart Savings Tips to Prepare Financially for the New Year
Here are some tips to help you reach your goals in the new year.
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After a couple years of strong equity returns with limited volatility, investors are being reminded of the risk of investing in the global stock markets. The global equity markets have moved lower since the end of the third quarter with volatility moving back up to normal levels.
There have been four key narratives impacting the equity markets over the past couple of months:
The global economy continues to be strong in this long economic expansion following the financial crisis. We saw another strong monthly employment report that showed 155,000 new jobs in the month of November and 3.1% year-over-year wage growth. The 155,000 new jobs in November brings the total for the year to 2.1 million. After nine years of strong gains in employment, there is the risk of running out of new workers to enter the workforce. This is highlighted in the low 3.7% unemployment rate. We would expect the employment gains to continue to slow down as we go forward.
There continues to be opportunity in both the equity and fixed income markets. The lower equity prices have brought valuations back down to attractive levels. Also, the increase in interest rates makes the fixed income market attractive again. Keeping a focus on the long-term will always remain important as these short-term moves can be a lot of noise. Make sure your investment portfolio is structured in a way to meet your investment goals without taking unintended risks. Our wealth advisors can help guide you through this process.
To reach a member of our Wealth Management team, please visit our website at https://www.greatwesternbank.com/wealth-management/overview/
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Here are some tips to help you reach your goals in the new year.
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