Weekend read: How punitive Fed policy can set you up for huge stock market gains

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Weekend read: How punitive Fed policy can set you up for huge stock market gains
Weekend read: How punitive Fed policy can set you up for huge stock market gains

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By Philip van Doorn

Also, the I-bond offframp, how to deal with a car lease, and the much-improved landscape for lifetime annuity income

During a long bear market, investor sentiment can be so dark and muddy that they can’t imagine better times. But they always come. Warren Buffett has repeatedly shown over the decades how to increase long-term returns by shopping for bargains after broad sell-offs.

Michael Brush now believes that the Federal Reserve has been too aggressive in tightening monetary policy to quell inflation. Here’s the golden opportunity he sees for investors.

Another element that may be counterintuitive to investors is that lowered earnings expectations for U.S. companies are creating big gains down the line, according to Mark Hulbert.

On the other hand… a grim warning for the economy

Jonathan Burton interviews Keith McCullough, founder and CEO of Hedgeye Risk Management, who is building a case for a worse recession than the one caused by the 2008 financial crisis.

A new report from S&P Global shows how quickly Americans are spending the money they’ve saved.

Read: Mohamed A. El-Erian makes the case for even tighter Fed policy

I-bond rates won’t stay high forever

The US Treasury’s Series I bonds have an interest rate of 9.62% that is fixed for six months if you buy them before the end of October. Interest rates reset every six months based on inflation. Beth Pinsker explains the rules for selling I-bonds when inflation is lower and interest rates are falling.

Income Alternatives: 21 Dividend Stocks That Yield 5% or More From Companies That Will Produce Lots of Cash in 2023

What’s next for oil and for you at the gas pump?

The OPEC+ group agreed this week to cut its daily crude oil production by 2 million barrels. While the agreement may result in a smaller reduction in actual production, there are many supply and demand factors that will affect prices going forward, Myra P. Saefong reports.

More on oil and gasoline for consumers and investors:

Here’s what to do if you’ve leased a car and are about to exceed the mileage limit

Your driving habits may turn out to be different from what you expected when you signed the car lease. Doug DeMuro explains your options while listing the pros and cons of leasing versus buying.

Related: When buying a used EV is a smart move—and when it’s not

Tornado housing market

Mortgage rates have doubled from the previous year, making New York’s housing market unpredictable, according to industry insiders.

More Housing Surplus by Aarthi Swaminathan:

Don’t ignore the open enrollment season—even if you’re covered by Medicare

It’s that time again when people whose employers provide health insurance face a slew of annual decisions. The standard advice is to review all your options, even if you were happy with the choices you made last year.

But what if you qualify for Medicare? The open enrollment season for Medicare runs from October 15th to December 7th. Most Medicare recipients don’t even bother to check their options during the annual enrollment period, and it can cost you a lot of money, as Alessandra Malito explains.

Read: Will working while receiving Social Security increase my benefit?

Opportunity to lock in income after retirement while interest rates are high

During periods of very low interest rates, lifetime annuities are not very attractive because low rates of income are locked in. But that has changed, according to Brett Arends, who shows how much retirement income $100,000 can buy today, depending on your age.

Why play football in Miami? Lower taxes

This chart explains why Tyreek Hill made what he called an “adult decision” to play for the Miami Dolphins.

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– Philip Van Doorn

 

(END) Dow Jones Newswires

10-07-22 1126ET

Copyright (c) 2022 Dow Jones & Company, Inc.

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