19 December 2018 FT — Articles to Read

19 December 2018

 

Question: According to MSN: Money, what are the 15 most important assets for raising your net worth?

 

Trump raises pressure on Fed before rates decision – Pg. 3

–          The Fed will announced its latest rates decision at 2pm Eastern time, and Jay Powell, the central bank’s chairman, will discuss the reasoning at a press conference afterwards

–          President Donald Trump has repeatedly implored the Fed not to lift rates.  Yesterday, he warned it not to make a “mistake” as he cited a Wall Street Journal editorial arguing for a pause

–          The US economy is expanding at a brisk 3.5% annualized pace, unemployment remains at its lowest levels since the 1960s at 3.7% and wage growth is accelerating.  Dropping plans suddenly for a quarter-point increase could send a panicky signal to markets

–          Core inflation has also remained tepid, at 1.8%

–          Among other key factors to watch are Fed forecasts for the longer-term interest rate, which stood at a median estimate of 3% in September.  If this edges down, it would be taken as a dovish signal, suggesting rates are closer to neutral than previously thought

 

Southern England’s housing crisis – Pg. 8

–          There is a shortage of affordable housing for people on lower incomes, particularly in London and the southeast.  The Right to Buy policy in the 1980s, which allowed council tenants to purchase their own homes at discounts, reduced the number of properties available to lower-income tenants, and building has not kept pace with demand

–          The most common cause of homelessness now, in Tunbridge Wells and nationally, is losing a private tenancy, either because people fall behind on the rent, or because the landlord sells the flat and they cannot afford anywhere

 

Answer: (1) Owning your primary residence; (2) Second home; (3) Retirement savings; (4) Education; (5) Rental real estate; (6) Health; (7) College savings; (8) Maintaining your home; (9) Investments; (10) Household items; (11) Private lending; (12) Collectibles; (13) Permanent life insurance; (14) Vehicle; (15) Income from an extra job