It was a bumpy week for the markets. A sell-off on Monday was the result of another drop in factory output. The Institute for Supply Management reported factory production dropped to a reading of 48.1 from the previous months’ reading of 48.3. A reading below 50 shows an economy contracting. Concerns are mounting that this historically long U.S. economic expansion may be sputtering out. That fear was quickly abated with Friday’s jobs report where 266,000 new jobs were added last month. More good news came in wage growth (which has been fairly stagnant).
As we progress through the final month of 2019, we maintain our bullish stance on U.S. equities. Investors are still sitting on approximately $3.4 trillion in cash according to a recent article in the Wall Street Journal. With interest rates this low, We could see some of that cash put to work in the market; especially if the economy keeps humming along.
In the current issue of Investment News, I read an interesting article on why seniors are working longer. After declining for decades, the share of people in the U.S. from ages 55 to 79 are staying on the job longer than ever before. In 1955, 33% of people in that age range still worked. Today, that number is up to 44%.
There are many reasons for the shift to working longer in life; increased education, improved health, changes in Social Security rules and a shift away from labor-intensive blue-collar jobs are a few. There could also be a more concerning reason for working longer. In a survey conducted for Provision Living Senior Living Communities in St. Louis, 1,000 people between the ages of 65 and 85 were asked why they continue to work either part-time or full-time. More than 60% said they continue to work for financial reasons, including; not being able to afford retirement (37%), supporting a family (23%), paying off debt (19%), paying a mortgage (13%) or saving for a big expense (4%).
The remaining respondents (32%) said they continue to work for personal reasons such as enjoying work (45%), preventing boredom (18%), shifting to part-time employment (6%) or avoiding loneliness (6%).
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Consult your financial professional before making any investment decision. You cannot invest directly in an index. Past performance does not guarantee future results.
This blog was prepared by David M. Kover, CFP® C(k)P®
Sources: Bloomberg, Dorsey Wright & Associates, Inc. and The Wall Street Journal, FactSet. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.
Securities offered through Triad Advisors, member FINRA/SIPC. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser. Resources Investment Advisors. LLC and Vertical Financial Group are not affiliated with Triad Advisors, LLC.