Wednesday Reading List
As explained in I Have a Blog, but Why Should You Care? the Wednesday Reading Lists are getting a revamp. There will be a short summary of each article’s takeaways in the post so in two minutes you can get caught up on the week’s best and click through for more detail as wanted.
Mortgage rates dip as markets react to Fed’s anticipated rate cuts in 2024 by ResiClub
The average mortgage rate fell to 6.82% as the market expects short-term rates to go down given the success we’ve seen fighting inflation. The spread between bond yields and mortgage rates is higher than average right now, and if they came back down to normal levels, we might be looking at 5.75% mortgage rates next year.
IRS Tax Changes for 2024 by Heritage Financial
The Internal Revenue Service announced annual inflation-adjusted changes to tax brackets, annual exclusions for gift and estate taxes, FSA limits, and more for 2024. Though the tax bracket adjustment of 5.4% is lower than the 7.1% increase in 2023, it is higher than the current rate of inflation and will be welcomed by most Americans. Click through for a table of the highlights.
Top 5 Global Risks of 2024 by Charles Schwab Asset Management
Three risks: Lingering inflation that doesn’t drop in a straight line to central bankers’ targets. Japanese rate hikes which could motivate Japanese investors to pull capital they’ve invested globally back into Japan. Election surprises that could hinder global trade if nationalist policies are enacted and a foreign government taking advantage of a U.S. presidential transition.
Two upside surprises: China’s economy rebounding given fiscal stimulus. AI productivity boost to help alleviate tight labor market concerns.
Ranked: Which Cars Depreciate the Fastest? by Visual Capitalist
Looking at which cars depreciated the fastest over the last five years and providing a chart with the top ten. Luxury cars struggle the most to hold their value, with BMW and Maserati’s being particularly bad. EV’s do as well.
Our Best Investment Ideas for 2024 by Morningstar
Stocks: small cap and value, banks, healthcare and utilities. Second-derivative AI stocks. International equities.
Bonds: search for positive real yield in developed markets excluding Japan, U.S. agency mortgage-backed securities, and emerging-markets debt may be attractive although currency risk is a factor with EM Debt.