Our Thoughts

FJY News to Know #53

Oil Prices Spike After U.S. Drone Attack on Baghdad — Proving Historical Truth About Middle East Crises

After Friday’s assassination of Iran’s Major General Qasem Soleimani, dubbed ‘The Shadow Commander’ in the West — oil prices rose, along with some safe-haven assets.  This is nothing new, as history has shown.  CNBC used a data analytics tool called Kensho to look at 20 different crises in the Middle East over the past 30 years.  In nearly all cases, oil and gold proved profitable if sold one to three months after the incidents.  Usually, indices such as the Dow and the S&P falter right after these types of crises — but tend to rally in the following months.  For more details about numbers for these instruments’ current performance, click here.

Amidst the Economic and Political Turmoil in Europe, its Main Currency Has Been Relatively Quiet

The Forex market, or foreign currencies — is easily the largest market in the world, with over $3T traded on a daily basis.  However, trading currency futures can be precarious at best.  Most newbie traders — and even veteran ones — opt to trade calmer pairs, and the euro is perhaps the most popular one.  As it’s paired with the greenback (EUR/USD), it has traditionally been a stable pair to speculate with.  This past year, the euro has been surprisingly calm — despite the various economic and political forces that have worked against it.  To see the EUR/USD chart and ranging habits over the past year, go here.

Stocks May Have Soared Last Year, But Most Millennials Didn’t Take the Bait

Despite a banner year for equities, only about 49% of millennials held stock or ETFs — or 401(k)s.  The financial crisis of 2008 occurred during many millennials’ formative years — and the habits and fears from this event have perhaps kept them away from serious investing.  For example, Katherine Lovinger of California, 36, is a biostatistician for a medical company.  She mainly invests in ETF funds, rather than individual stocks.  She keeps most of her cash in savings accounts — due to fears of the stock market outlook.  However, if another crash or semi-crash occurred, it might prove to be a great opportunity for millennial investors to dive in.  To read more about the situation, read this article.

Baby Boomers Are Entering Their Golden Years — But is America Ready to Take Care of Them?

By the year 2030, 20 million Americans will be at least 80, and nearly nine million will be 85 or older, according to the Census Bureau.  However, the U.S. is basically unprepared for this increase in older adults who will need financial and personal assistance.  Most families are simply not ready for the financial burden they’ll inherit in trying to support their aging loved ones.  Not only this, but the government is also facing a crisis:  The two-thirds of older adults enrolled in Medicare will receive no long-term care benefits — unless they are enrolled in the Medicare Advantage program.  To read about the long-term outlook on this issue, click here.