The 401k Blog
Uncertainty is as much a natural element of life as anything you’ll find on the periodic table. Unfortunately, it has a somewhat less innocent (if not totally evil) twin: fear. You can think about it this way. Uncertainty is simply the reality that accompanies many situations, and it will never go away. Very little in life is certain. Fear and anxiety, on the other hand, you can manage.
Mapping an investment approach for what Morgan Stanley strategists call a “hotter and shorter” midcycle transition may be anything but straightforward. Investors may need to reconcile early-cycle timing, midcycle conditions and pricey late-cycle valuations — especially for U.S. equities — while also factoring in potential inflation, policy changes and higher corporate taxes.
Recently, a 401k provider, hoping to capitalize on the cryptocurrency fad, announced that it was going to allow 401k plans it works with to access cryptocurrencies as investments. This is a horrible development for 401k plan participants. Here’s why.
Thanks largely to rising consumer spending and trillions in government stimulus, U.S. gross domestic product rose an annualized 6.4% in the first three months of the year, and total U.S. economic output could return to pre-pandemic levels by the end of 2021, years ahead of earlier expectations.
Second quarter is likely the peak growth rate for both the economy and corporate earnings; with positive economic surprises waning.
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