Stocks wavered in April, with the S&P 500 ultimately rising a decent 0.85%. Investors were cautious. Was the economy doing well? Or not as well as commonly believed? Last month, two headlines emerged that affected investor perceptions.
In first grade, I used the “squirrel away” method of saving money. As the holidays approached one year, I fell in love with a stuffed bear at the local drug store. Some principles from that experience still hold true.
The stock market was hardly placid in March – while some key economic indicators encouraged investors, dollar strength and depressed oil prices weighed on stocks and commodities again. Consumer confidence and hiring were again bright spots, home sales took a turn for the better, and both consumer prices and wages managed to rise.
With the right outlook, saving becomes a commitment. With a less positive outlook, it becomes a task, one which is often postponed. If people are asked if they can save 20% of their income, the answer may be a resounding “no” – but if they are asked if they can live on 80% of their income, that may seem reasonable. Read more here.