Downgraded: U.K. loses perfect AAA credit rating

Standard & Poor’s downgraded the U.K. by two notches to AA on Monday, the latest fallout from last week’s shocking U.K. referendum to leave the European Union. S&P warned that Brexit will “weaken the predictability, stability and effectiveness” of British policymaking. The ratings firm said Brexit may also lead to a “deterioration” of the British […]


The 4% retirement rule

I hear people refer to the 4% rule for withdrawals in retirement, but I don’t know how you actually follow it. Do you just withdraw 4% of your nest egg’s value and increase that amount by inflation each year? What if the market drops and your nest egg’s value falls? I’m confused. –B. A., South […]


The Economist rates Trump presidency among its top 10 global risks

A Donald Trump presidency poses a top-10 risk event that could disrupt the world economy, lead to political chaos in the U.S. and heighten security risks for the United States, according to the Economist Intelligence Unit. Electing Trump could also start a trade war, hurt trade with Mexico and be a godsend to terrorist recruiters […]


What are market inflation expectations and why do they matter?

WITH stockmarkets tumbling and the oil price below $30, some economists are once again worrying about global deflationary pressure. Low inflation can be toxic for economies when interest rates are also low (see a previous Explains). One warning light that is flashing red in America is market expectations of inflation, which have plummeted to lows […]


‘Carnage’ in Post Rate-Hike World

The DoubleLine CEO says that if the Fed raises rates next week, everything will change. CEO Jeffrey Gundlach says a hike in interest rates by the Federal Reserve is nearly certain next Wednesday, and that means crazy days are coming for investors, advisors, traders and others. “It’s a different world when the Fed is raising […]