Posts by Mike Paolucci
The Buffett Indicator
Photo credit: ID 336907040 © Yaroslaf | Dreamstime.com What do lizards, Blizzards, and underwear have in common? Warren Buffett and Berkshire Hathaway. And do the lizard and the DQ Blizzard (and Berkshire Hathaway holdings, in general) predict a freeze in an exceedingly hot investment market? Possibly. More on that later. The Omaha-based conglomerate counts GEICO, Dairy Queen, and Fruit of…
Read MoreClients Ask: What Is a Yield Curve Dis-inversion?
Photo credit: Pixabay Clients Ask What is a Yield Curve Dis-inversion? Will Fed Rate Cuts Help a Slowing Economy? Or Will Fed Rate Cuts Re-ignite Inflation? Highland Responds After an extended period of inversion, the U.S. yield curve has recently undergone a significant change by dis-inverting. Our Highland clients have wanted to know what this…
Read MoreBuckle Up: A Wild Ride Part 2
Photo credit: Unsplash Unprecedented Movements in the Market: What’s Happening? In early August 2024 stock markets around the world declined precipitously, ending what seemed to be a never-ending low volatility trading environment. From peak to trough, the S&P 500 index declined approximately 10% in a handful of trading days; the volatility index as measured by…
Read MoreFiscal Dominance: How Pension Plan Sponsors May Have to Adapt
Photo credit: Pixabay Buckets of federal spending are swamping conventional inflation fighting tools. What plan sponsors should know. If you’ve ever tried bailing water out of a flooding basement with a bucket as your tool (as the water rises ever faster), you know something about fiscal dominance. The concept, or condition, is being talked about…
Read MoreThe Power of the PENsion: Am I a Plan Fiduciary? What Does That Mean?
Photo credit: iStock If your job responsibilities include involvement with an employee benefit plan, you may be a fiduciary, and so might others be who help manage the plan or its assets. Given that, it is important to know what a fiduciary is, who is deemed to be a fiduciary, and what the responsibilities are…
Read MoreSVB – A Year After the Bank’s Collapse
Photo Credit: Alexey Yarkin Short-sighted, Vulnerable, Broke Nearly a year ago, Silicon Valley Bank failed. On March 8, 2023, SVB announced a $1.75 billion capital raising effort, offering its common stock and depository shares. As the announcement moved through media outlets, the message heard was this: SVB is short on capital and it may not…
Read MoreThe Power of the PENsion: Reality and Resolutions – Guaranteed Retirement Income
photo credit Unsplash The Reality Americans have experienced in recent years: a worldwide pandemic, inflation, interest rate increases and geopolitical issues. There is a general feeling of unease. Add to that baseline the anxiety that workers report (up 33% in 2023[i]) concern about their jobs, their earnings, and their future financial security. According to a…
Read MoreThe Power of the PENsion: Have We Stuck the Landing? (Or are we skating on thin ice?)
Earlier this month, the Federal Open Markets Committee (FOMC) unanimously agreed to hold the key federal funds rate in a target range of 5.25% to 5.5%. This short-term benchmark rate has been held steady since July 2023. With the decision to leave the rate unchanged, it might have seemed we’d stuck the landing—the economy’s soft landing…
Read MoreThe Power of the PENsion: Count the Cost of Offering a Pension Plan
Comprehensive analysis of your plan may show the cost to be well worth your employees’ benefit What is the cost of providing a defined benefit pension plan? Beyond employer contributions, when determining costs, we consider custody, asset management, and consulting fees. These fees vary depending on the management of the plan and whether it is…
Read MoreThe Power of the PENsion: Labor Day and the Pension Plan
Pension Plans may be declining in numbers, but for millions of workers they are an essential retirement benefit with a history that is tied to Labor Day. Although summer may end officially on September 21, for most Americans, the season ends with Labor Day. The first Labor Day was celebrated in 1882. Far from marking…
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