25 August 2018 FT — Articles to Read

25 August 2018

 

Question: According to MSN:Money, what are 10 things you’ll spend less on in retirement?

 

Fed chief shrugs off inflation fears – Pg. 1

–          The Federal Reserve does not see risks of the US economy overheating….

–          The Fed has signaled it will lift rates again next month, with a December move also widely expected.  But prospects get murkier in 2019 as rates close in on current estimates of neutral rates – broadly defined as the interest rate that keeps the economy on an even keel

–          …Fed was attempting to navigate between twin risks – moving too quickly and needlessly shortening the economic expansion, and conversely lifting rates too slowly and risking a “destabilizing overheating”

–          Mr Powell’s dovish tone…

 

At a record high, the US market is still shrinking – Pg. 6

–          The US stock market this week reached twin landmarks: an all-time high, and the longest bull run in history

–          The tally of listed domestic companies in the US has almost halved from 8,090 in 1996 to 4,336 last years, …

–          Total US market capitalization is more than 130% of GDP, against 105% in 1996.  But companies are on average older and bigger than they were two decades ago

–          Mergers and acquisitions have brought consolidation in industries from oil and gas to beer

–          IPOs are running at half their annual average level of the 1980s and 1990s

 

Answer: (1) Transportation; (2) Clothing; (3) Groceries; (4) Entertainment; (5) Mortgage; (6) Education; (7) Insurance; (8) Alcohol and Tobacco Products; (9) Pets and Pet Supplies; (10) Taxes