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GDP: Gross Domestic Output (GDP) serves as a broad indicator for a country’s economic output. It measures the total market value of final goods and services produced in a country in a specific timeframe. GDP takes into consideration the output of services provided by the government, such as money spent on defense, healthcare, and education. The U.S., China, Japan, and Germany make up over half of the world’s economic output (see below). In the U.S., the GDP declined by 1.4% in the first quarter of 2022. In addition, inflation is the highest it’s been in four decades, with gas prices leading the way. And stock markets are at their lowest ebb since the pandemic’s start. Americans are gloomy about financial prospects. According to a Morning Consult poll released last week, just 26 percent of the public believe they are securing their financial futures. Sometimes it can be hard to take it all in and understand things like the impact of GDP on your personal finances … and sometimes, it just feels too dismal to care about it. If you follow the train through, though, our decisions today have the potential for generational impact. But as we’ve said before, it’s a two-sided coin. Economies bounce back, and stock markets level out.

Thinking Through Transitions: It’s a fact—every single life event impacts your financial picture. Having a baby? This family transition will impact your finances. Starting your dream job? Career transition that will affect your finances … hopefully for the better! No matter what, understanding transitions and their inevitable impact will help fill out the picture of your financial goals and current state of affairs. Some questions that we’d love to ponder with you:

  1. What is going on in your life right now that could impact your financial situation?
  2. Are there others whose lives and lifestyles are affected by your financial decisions?
  3. What grade would you give your financial situation? Why?

Birth, death, college, and retirement are just four of the more than sixty major life transitions that can impact your financial picture. Let us help you think through these. Don’t hesitate to give us a call today with any questions.

Business Briefing

  • Senate Confirms Powell: The Senate overwhelmingly confirmed Federal Reserve Chair Jerome Powell to a second four-year term last week. As we’re all well aware, Powell started a campaign of interest rate hikes and asset sales to slow growth and bring down the highest inflation in 40 years. (Politico)
  • Baby Formula Shortage: The Biden administration said it will take steps to address a worsening baby formula shortage. The White House said after a meeting between Biden and retailers and manufacturers that the administration will push states to waive packaging regulations to help get formula to stores faster. The Federal Trade Commission and state authorities will take steps to discourage price gouging. The Food and Drug Administration is working on importing formula from Mexico, Chile, Ireland, the Netherlands, and other countries. (The New York Times, Fox News)
  • Twitter Buyout on Hold: Elon Musk says he put his $44 billion deal to buy Twitter “temporarily on hold” until he sees the calculations behind Twitter’s report that false or spam accounts made up less than 5 percent of its 226 million monetizable daily active users. (The Verge)
  • Cryptocurrency: U.S. stock futures rose early Friday after a mixed day on Thursday. After several volatile months, the S&P 500 is now down more than 18 percent from its record high, putting it close to bear-market territory, which is defined as a loss of 20 percent. Bitcoin bounced back above $30,000 on Friday despite continuing problems for stablecoin TerraUSD that have panicked cryptocurrency investors. (CNBC, The Wall Street Journal)

Total Eclipse of the … Moon: Perhaps you noticed last night that the current lunar eclipse is coupled with a blood-red spectacle. The moon’s surface appears the color of glowing copper, gradating to a beautiful yellow and silver color. If you miss it, mark your calendars for the next one on November 7th and 8th.