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The Federal Reserve recently downgraded the outlook for the U.S. economy. At the same time as making the announcement of the downgrade, Ben Bernanke also announced that they will be taking quantitative easing measures, beginning what has been called Operation Twist. The $400 billion program is supposed to help stimulate the economy, but there is disagreement over whether this will work. Some think that it is foolhardy, and will only encourage inflation, while others think…

Last Friday evening, S&P downgraded the U.S. credit rating. This marks the first time that the U.S. has seen its sterling rating tarnished. Since then, the stock market has been quite volatile, with investors being taken on a wild ride. However, the stock market isn’t the only thing that might be affected by the credit downgrade. Mortgage rates might soon be affected. If Treasuries Rise, Mortgage Rates May Rise, Too One of the possible effects…

[ad#Content 300×250]This Christmas season, roughly $715 will be spent by consumers for gifts, reports Gallup. This is lower than 2009’s $740 per person, and 2008’s $801 per person. The recession is still breathing in our economy and we can see it here. This poll, by Gallup, reports our fears are true: consumer confidence as well as¬†discretionary income are low. The muted nature of this year’s decline is reflected in consumers’ own evaluations of their spending…

When times are economically uncertain, many decide that capital preservation is more important than growth. When the economy is in trouble, and when there are concerns that things could get worse, many switch their portfolios into assets that are considered less risky. The idea is to preserve their capital, rather than focus on growing their assets. This is because growth comes with greater risk. Greater Growth Potential = Greater Loss Potential Growth can be a…