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FJY News to Know #59

Big Personal Debt Numbers Are Back — Mortgage Originations & Refis Have Risen; Auto Loans Are Following Suit

Americans have been consistently borrowing as more households took out loans to buy or refinance existing mortgages. Total U.S. household debt has passed the $14T mark — for the first time ever. Much of this is due to the easing of rates and points accompanying most loans. Student debt has also increased: From $1.46 trillion at the end of 2018 to $1.51 trillion. Auto loans rose to $1.33 trillion, while credit card debt rose to a record $930 billion. Auto debt, which has risen for 35 consecutive quarters, increased $16 billion from the previous quarter. Total debt for millennials rose to a record $1.04 trillion. To see a graph regarding how these numbers compare, click here.

 

The Specter of the Coronavirus is Weighing on Investors’ Strategies

More than 3,000 passengers on two Carnival cruise ships are returning home, which will fan out to more than 40 countries. As a result of this, traders are changing their investment game plans. Many are beginning to dump more funds into hedges, in the event that the virus goes more global. The Federal Reserve is under increased pressure to reduce interest rates. “The impact of the virus on the global economy is going to be significantly more than what people are expecting, and when the global economy goes south, the Fed steps in,” said Tony Farren, managing director at broker-dealer Mischler Financial. To read about bond activity, and to see a list of February market events, visit this page.

 

People Are Living Longer — Healthcare Technology and Longevity Will Impact the Retirement Timeline

The Stanford Longevity Project is partnering with Wells Fargo, Instructure, and Principal to research financial security, lifelong learning, and healthcare. This month, the U.S. saw a sharp decline in the cancer death rate. The possibility of someone making it to 100 years of age is not as incredible as it used to be. New advancements in healthcare technology include more electronic wearables: One such tool can diagnose a stroke type in the field, which will aid first responders with their initial treatment. These new trends are going to impact marketing strategies as a result; Companies will need to embrace a lifelong audience. Individuals will need to assess their retirement portfolios, taking into account more significant possible timelines. To read more about longevity and retirement formulas, please click here.