Weekend reads: How to manage your finances when inflation is high and interest rates keeping shooting up

Financial markets have reacted with shock to the Federal Reserve’s reiterated vow to continue tightening monetary policy to combat high inflation. According to Freddie Mac, the S&P 500 is down 10.5% in the past month and the average interest rate on a 30-year mortgage loan has risen from 6.02% to 6.29% in just one week. A year ago, the average interest rate on a 30-year loan was 2.88%.

Federal Reserve Chair Jerome Powell said this week that fighting inflation will be painful and that he doesn’t know if tighter monetary policy will lead to a recession.

But what does all this mean for you? Andrew Keshner has advice on how to prepare for high interest rates.

Beth Pinsker explains how inflation and a potential recession can affect you personally.

Alessandra Malito has suggestions on what retirees and near-retirees should do in times of economic turmoil.

The case has already been rebuilt

San Francisco home prices fell 3.4% in August.

Andy Konieczny – stock.adobe.com

Freddie Mac has presented startling statistics on the mortgage lending market that underscore a maelstrom of backlash as potential home sellers and buyers are being squeezed out of the market.

In a sign of a dramatic turnaround, house prices in August fell the sharpest since 2011.

A slowdown in the home finance market is particularly difficult for non-bank mortgage lenders, who began laying off staff months ago. Aarthi Swaminathan interviewed Rocket RKT,
-1.82%
CEO Jay Farner, who described the steps the company is taking to stay afloat.

Don’t sell in a declining market

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In general, rising interest rates are bad for stocks because bonds become more attractive as yields rise. Using decades of market data, Mark Hulbert shows why this reasonable assumption for long-term investors has turned out to be wrong.

More from Hulbert: If the market passes this test, stocks are expected to rise

The case for energy stocks

Oil prices fell dramatically on Friday, accelerating the pullback of West Texas Intermediate Crude CL.1,
-4.86%
from $130.50 on March 7 to just under $80 a barrel from its intraday high in the front month contract of $130.50. Despite this decline, earnings estimates for the energy sector have increased. This and other factors underscore what could be a good case for energy stocks if you’re a long-term investor.

Another group of stocks for a changing US economy

Rockwell Automation can benefit as companies increase manufacturing capacity in the US

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Various bottlenecks during the coronavirus pandemic have highlighted the need for various industries to revitalize their supply chains. Michael Brush lists 17 stocks from companies that can benefit from the reshoring trend.

Financial considerations for people working beyond 65

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Postponing retirement has one obvious benefit — you’ll keep getting paid. But there may be other financial consequences. Here’s how working over 65 can affect Medicare and Social Security.

To tip or not…or how much to tip

MarketWatch illustration

Quentin Fottrell – the Moneyist – helps a couple who disagree on how much to tip their housekeeper.

Italian elections and money

Concerns about disputed elections in Italy can affect the financial markets.

More about Europe: Pound and euro tumble as dollar index surges to highest level since mid-2002

life after retirement

Roger Federer announced his retirement from tennis but already had job prospects after retirement.

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When famous athletes retire from their sport, they often have plans for a new career. Here’s how you can prepare for your own retirement, stay fit, and be ready when you decide to go back to work.

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