Every Friday I recap “news you can use” from the week: a handful of quotes from major (and often expensive) news sources, so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s an overview of what happened this week.
AI is starting to pick who gets laid off (Feb. 20, Washington Post) Human resources managers use machine learning software to analyze millions of employment related data points, churning out recommendations of who to interview, hire, promote or help retain.
A January survey of 300 human resources leaders at U.S. companies revealed that 98 percent of them say software and algorithms will help them make layoff decisions this year.
Investors Say They Want $3 Million in Savings for Comfortable Retirement (Feb. 20, Bloomberg)
It’s one of the thorniest financial questions: how much is enough to retire comfortably?
The answer is somewhere between $3 million and $5 million, according to the 553 investors worldwide who shared their views in the latest MLIV Pulse survey. About a third of investors pegged it at $3 million, and roughly another third at $5 million.
Stocks Rally Despite Squeeze on Profitability (Feb. 21, Wall Street Journal) Rising costs for key inputs such as labor, materials and energy are denting corporate profits across industries, even as sales are rising. Falling profits worry investors because they can portend an economic slowdown and leave companies strapped for cash. That could lead to less spending on new corporate projects, or crimp investor payouts like dividends or stock buybacks.
U.S. Home Sales Fall for 12th Straight Month (Feb. 21, Wall Street Journal) Sales of previously owned homes, which make up most of the housing market, fell 0.7% in January from the prior month to a seasonally adjusted annual rate of 4 million, the slowest since October 2010, the National Association of Realtors said Tuesday. January sales fell 36.9% from a year earlier.
Natural-Gas Prices Plunge, and Drillers Dial Back (Feb. 22, Wall Street Journal) Natural-gas prices have dropped more than 65% since mid-December and this week hit their lowest level since 2020’s pandemic lockdown, leading producers to throttle back drilling in a dramatic turn in the market for the heating and power-generation fuel.
The Average 401(k) Lost 20% of Its Value Last Year (Feb. 23, Bloomberg) The average 401(k) account at Fidelity Investments lost about a fifth of its value in 2022, tumbling to $103,900 from $130,700, according to a report Thursday from the asset manager.
US Unemployment Claims Drop to Lowest Level in Three Weeks (Feb. 23, Bloomberg) US claims for unemployment benefits unexpectedly fell to the lowest in three weeks, signaling unrelenting tightness in the labor market.
Initial unemployment claims decreased by 3,000 to 192,000 in the week ended Feb. 18, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 200,000 applications.
The World’s Most Painful Trade Is Finally Ending as Dollar Peaks (Feb. 23, Bloomberg) Having skyrocketed to generational highs last year — deepening poverty and turbocharging inflation from Pakistan to Ghana — the currency has now entered what some forecasters are calling the start of a multi-year decline.
Investors say the dollar is on the way down because the bulk of Federal Reserve rate increases is over, and virtually every other currency will strengthen as their central banks keep tightening.
Inflation jumps in early 2023, PCE shows, and stays stubbornly high at over 5% (Feb. 24, MarketWatch) The cost of U.S. goods and services jumped 0.6% in January — the biggest increase since last summer — in another sign that stubbornly high inflation is likely to take awhile to return to low pre-pandemic levels.
The annual increase in prices rose to 5.4% from 5.3% in December — the first uptick in seven months. The PCE index touched a 40-year high of 7% last June.
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About me
I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.