Happy Wednesday. Included today are insights on the recent strength in corporate debt, Ray Dalio’s thoughts on tax changes, and a special appearance from our very own Brad Sherman in Forbes.
INVESTING & THE ECONOMY
The U.S. corporate debt market’s weakest links are showing new signs of strength. Bonds rated in the BBB zone — the worst performing in the investment-grade universe in 2018 and its least creditworthy members — are the standout performers early in 2019. Corporate bonds with that rating have returned 0.8 percent in January, compared with the 0.5 percent average for the asset class.
Stock markets have been resilient through the current partial government shutdown, with the S&P 500 index SPX, -1.42% gaining nearly 10% since the standoff began Dec. 22. But according to Goldman Sachs analysts… this rally from oversold conditions is masking the effect that the shutdown and uncertainty over trade policy is having on stock prices.
Raising taxes on wealthy Americans in response to the defining issue of our time – income inequality – could have huge and unintended consequences on markets, according to Ray Dalio, founder of the world’s biggest hedge fund.
The American dream is alive and well, and Americans who aspire to build wealth and become rich may be surprised to know they don’t need a flashy job Opens a New Window. or come from an affluent family to build a fortune.
A new bill has reportedly been pre-filed in South Carolina that would require high school students in the state to take a personal finance class. Under the legislation from Republican state Sen. Luke Rankin, high school students would be required to take at least one half-credit personal finance course and pass a test at the end of the school year in order to graduate
A lot of shade has been thrown in Gen X’s direction recently. Trending on Twitter was a screengrab from a CBS news story on Millennials. The onscreen picture showed generational dates and statistics for the Silent, Boomers, Millennials and Gen Z generations. But the generation from 1965 to 1980 – the key core 40 to mid-50-year-old demographic.