Author: Money Mechanics

Bank of America strategist Michael Hartnett has voiced concerns about a possible bubble in the AI stock market. This comes in light of valuation metrics reaching historic highs.Hartnett has pointed out the S&P 500’s price-to-book ratio, which is a valuation measure comparing the total market cap of the index’s constituents to their total assets minus liabilities. As of August, this ratio hit a record high of 5.3, surpassing the 5.1 level observed at the height of the dot-com bubble in March 2000.Other valuation metrics also suggest an overheated market, with the S&P 500’s 12-month forward price-to-earnings ratio at its peak since the dot-com era, except for August 2020.…

Municipal bonds continue to be a core component of fixed-income portfolios, especially given their tax-advantaged income and historically low default rates. But the 2025 landscape introduces a set of different risks and opportunities for both investors and issuers. As the rate cycle turns, fiscal pressures evolve, and the political climate remains fluid, municipal bond market participants must reassess their risk and reward appetite to better understand the evolving environments. In this article, we will take a quick look at a few key points that are likely to evolve and impact the municipal debt markets for the duration of President Trump’s…

A woman shops at a supermarket on April 30, 2025 in Arlington, Virginia.Sha Hanting | China News Service | Getty ImagesFrom clothing to auto parts to electronics and more, tariffs are making everyday items cost more at a time when the labor market is looking increasingly fragile.A key Bureau of Labor Statistics inflation report released Thursday showed price increases for a variety of tariff-sensitive items.Apparel prices rose 0.5% as did video and audio products. Motor vehicle parts climbed 0.6% while new car prices were up 0.3% and energy increased 0.7%. Groceries accelerated 0.6%, the biggest monthly move since August 2022.…

The stage is set for the Federal Reserve’s meeting next week. The markets surged higher after the August reading on producer price inflation turned unexpectedly negative. That news sharpened the focus on the recent labor data and made it a near certainty that the Federal Reserve will lower interest rates.  However, investors now have to wonder if the market has already priced in that cut and if future cuts may come. The S&P 500 is already up about 12% in 2025. That’s slightly above the index’s long-term average, but about 50% lower than the gains made in the last two…

SANTA FE, NM – JULY 12, 2017: A couple dances during a live music concert in the historic Plaza in Santa Fe, New Mexico. (Photo by Robert Alexander/Getty Images)Getty Images It has been a little more than a year since I was accepted as a contributor to Forbes.com writing about the nonfinancial aspects of retirement. To write these articles, I have a library filled with shelves of books and hundreds of articles. I also collect ideas from what I learn from my monthly podcast called “Becoming a Sage” where I interview thought leaders about work and life wisdom. Recently, I…

Retiring at 55 might seem too young. You can easily work another decade. Plus, you can’t collect Social Security until 62 at the earliest. Even then, you’re losing money by receiving benefits before your full retirement age (FRA).Nonetheless, millions of people strive to retire at 55 and don’t care if they have to do it without Social Security or without Medicare (which doesn’t kick in until 65). They put a greater value on life outside the office, even if it means downsizing their lifestyle.“A lot of people who retire early worry about passing away early and not having time to…

Key Takeaways A Federal Reserve interest rate decision comes Wednesday, followed by remarks from Chair Jerome Powell.Meta Platforms CEO Mark Zuckerberg delivers a keynote at the company’s annual Meta Connect event.U.S. retail sales, housing starts, and jobless claims lead the week’s economic releases.FedEx, General Mills, and Bullish are among the companies scheduled to report earnings. The Fed is on the clock. A highly anticipated interest rate decision from the Federal Reserve takes the spotlight this week; both that decision, set for Wednesday, and subsequent remarks from Chair Jerome Powell, could move markets as he lays out the central bank’s views…

Key Takeaways A market for alcohol-free beer, wine and spirits shops has opened up as more Americans moderate their drinking.Fewer adults drink, and those who do consume less than in years past, according to Gallup.Many are more aware of and concerned about the health risks of drinking, including young adults, research shows. When the booze-free bottle shop Spirited Away opened in Manhattan five years ago, its proprietor found about a dozen options with which to stock the shelves. Now, according to co-owner Alex Highsmith, the store stocks about 300 brands. Business, meanwhile, is increasing annually by double-digit rates. Customers, she…

After spending time scrutinizing financial markets and Fed rates, the last thing you probably want to think about is how much the tax man will take from your earnings.But tax planning while investing is crucial. Not only can you minimize federal taxes through strategies like tax-loss harvesting, but if you live in a low-tax state, you might reduce investment taxes on your passive income.So here are two states that could give investors a “tax-friendly” edge in the marketplace — should you decide to move. From just $107.88 $24.99 for Kiplinger Personal Finance Be a smarter, better informed investor. CLICK FOR…

Key Takeaways The trust funds used to pay Social Security benefits will be depleted in 2033. After 2034, the program will continue paying benefits, but they will be reduced. Policy changes to payroll taxes and Social Security benefits could ensure the long-term longevity of the program through Gen Z’s retirement. Gen Z can prepare for retirement, with or without Social Security, by maximizing contributions to retirement accounts and creating alternative income streams, such as real estate, annuities, and side hustles. According to a survey by Western & Southern Financial Group, a majority of Generation Z (those born in the years…