Financial FYI: Hispanic Spending Power, American’s Saving not Spending, UK Home Prices Falling, & more
Financial FYI: Creating Financial Buzz Through Interesting Financial News, Statistics, and Research
Hispanics Are A Growing Force
The buying power of the Hispanic population is expected to hit $1.2 trillion in 2012, up from $862 billion in 2007 according to the Selig Center for Economic Growth at the University of Georgia. That means Hispanics will account for nearly 10% of all spending in the United States. Source: Investment News.
Americans are Saving not Spending
A recent study by Harris interactive for the AICPA found that 25% of Americans were spending wisely or spending less in an attempt to save money. That compares with 2% who said they cut spending to save last year. The study also showed that just 15% of respondents said that they couldn’t save money as compared to 29% who said that last year. Source: Investment News.
Vietnam Inflation at 25%
Vietnam is currently experiencing crisis type inflation. According to the government, their inflation rate in May was 25.2% on an annual basis, up from 21.4% in April, and 14.1% in January. This, in addition to the country main stock index being down 55% is contributing to negative ratings on the country bonds and economic outlook. It’s suggested that the main result is rising food prices combined with poor lending practices and slow changes in the country’s central bank to raise rates to head-off inflation. Source: Wall Street Journal.
Home Prices in UK Falling Fast
Home prices in the UK took their largest tumble in May in the 17 years of recorded data. House prices fell 2.5%in May with prices falling 4.4% from a year earlier. Prices have fallen for 7 months is a row, the longest stretch in 26 years. Source: Wall Street Journal.
35 Hour Workweek No More
French president Nicholas Sarkozy is introducing a bill that would end France’s 35 hour work week which was introduced back in 1998 as a way to increase jobs by limiting the number of hours others were available to work (previously a 39 hour work week). Source: Wall Street Journal
Stock Market Recovery 120%
According to the Leuthold Group, the average decline in a bear market is 30% while the average rise in a recovery is 120%. Source: Money Magazine
Financial FYI: Retirement and Healthcare
Financial FYI: Creating Financial Buzz with Interesting Financial News, Statistics, and Research.
Fidelity estimates that a husband and wife need the equivalent of $215,000 in savings at age 65 to offset medical insurance costs, not including long-term care. Source: Financial Planning Magazine
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According to the Kaiser foundation, the cost of the average family’s health insurance premiums rose 80% from 2000 to 2006. During that same time, the consumer price index increased by only 17%. This suggests that healthcare trends at 2.5% above the general inflation rate. In fact the U.S. now spends 16% of its GDP on healthcare, double the average of industrialized countries. Source: Financial Planning Magazine
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Sales of Existing Homes Fall, Again
The National Association of Realtors said that existing home sales dropped by 1 percent to 4.89 million units, matching the all-time low set in January. These records go back to 1999. The median price for an existing home dropped 8 percent, compared with a year ago, to $202,300. Analysts predicted further price declines given the huge backlog of unsold single-family homes, which rose in April to 10.7 months supply at the current sales pace, the highest inventory level since June 1985. Source: Associated Press.
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Billionares and Seniors In The Work Force
For the first time in 2008, there were more than 1,000 billionaires with a combined net worth of $4.4 trillion. The club includes 226 newcomers with the average billionaire being age 61, down from 62 last year. The average billionaire is worth $3.9 billion, $250 million more than last year. Source: Forbes.com
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It is expected that 10.1 million people 65 and older will be in the labor force by 2016. This compares to 5.5 million seniors in the workforce in 2006. Source: Investment News.
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