Despite declines on Friday, the S&P 500 was positive last week, showing gains on a strong earnings season. To date, more than 2/3 of reporting companies have exceeded earnings expectations.[1] At the same time, the Purchasing Managers’ Index showed the largest contraction in services and manufacturing activity since the start of the pandemic.[2]
This week the Fed meets again, and many analysts are expecting another 0.75% interest rate hike. Earnings reports will continue, with many large tech companies reporting this week.
Inflation, the ongoing pandemic, and other anxiety-inducing topics are causing another financial problem. More people are not paying their bills, but it’s not because they don’t have the money.[3] People are simply forgetting to pay them. Financial advisers are also reporting clients are canceling appointments or simply not showing up.
People gave forgetting to pay as the most common reason they would miss a credit card payment in a recent survey from WalletHub. Not paying your bills can take a toll in numerous ways. Late fees add up. Worse than that, most credit cards have a penalty rate if you’re late, causing interest rates to rise dramatically. Late payments are also on your credit score for seven years.
But right now, people are overwhelmed with life. To keep things from spiraling out of control, set your credit cards, utilities, and other bills on auto pay. Make an appointment with yourself to review your bills once a week, or with every paycheck. Make an appointment with your financial advisor at least once a year. And right now, you might not want to look at your 401(k) statement. If you do, remember to look at the number of shares you have, not the dollars.
Your action item this week is to review your full credit report. You can order one from each of the three credit bureaus once a year. Pick one, and go through it line by line to make sure it’s accurate.
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Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investment(s) may be appropriate for you, contact the appropriate qualified professional prior to making a decision.
[1] Market Watch: Dow falls 150 points, stocks pull back ahead of next week’s earnings blitz by tech giants bu Joy Wiltermuth and Joseph Adinolfi 07/22/22.
[2] Market Watch: Dow falls 150 points, stocks pull back ahead of next week’s earnings blitz by tech giants bu Joy Wiltermuth and Joseph Adinolfi 07/22/22.
[3] The Wall Street Journal, People Have Money, but They’re Forgetting to Pay Bills by Veronica Dagher, 07/19/22