What's up hot summer?

Dear Reader,


    
    Mistakes, climate change, dementia risk, reading and debt.


One costly mistake millennials are making. Cash. 1 in 3 millennial think cash is the best long-term investment (savings accounts and CDs). With the inflation target at 2%, earning less than the rate of inflation is losing buying power. Saving is important, but when saving for a decade or more, you can afford some short-term risk in exchange for compounding and higher rates of return. The millennial’s actions of not trusting the stock market and valuing cash more than securities is understandable… they did experience the 2008 financial crisis first-hand.


Climate change. Climate scientists have discovered an uneven pace of seasonal change in the atmosphere. The frequency of temperature has become very volatile. It is getting much hotter in summers and much cooler in winters. Also, the seasonal cycle is changing and this is observed by trees flowering early.


GDP. Gross Domestic Product has increased 4.1% Q2 to Trump’s acclaim despite an ensuing fiscal cliff. According to the Bureau of Economic Analysis, “the second-quarter increase in real GDP reflected increases in consumer spending, exports, business investment, and government spending”. Many economists, including NYT economics reporter Ben Casselman, are attributing the growth to the Trump tax-cuts and increases in government spending. Despite the growth, the Trump administration’s laxed economic policy is coming at a cost. According to the Office of Management and Budget, because of the Budget Act of 2018, debt will increase by $1 trillion over the next decade.


Cutting your dementia risk. About a third of dementia causes might actually be avoided by living a lifestyle that better protects your brain. Dementia impacts memory and leads to a decline in cognitive performance. One brain disorder that causes dementia is Alzheimers and it is the most expensive disease in America costing $215 billion per year. Here’s a list of nine ways to cut your dementia risk:

1. Check your hearing and get a hearing aid if you need one
2. Keep learning
3. Stop smoking
4. Seek out treatment for depression
5. Exercise
6. Manage high blood pressure
7. Be social
8. Maintain a healthy body weight
9. Keep your blood sugar in check

Reading a book makes you a better friend. The readers ability to be transported by a story actually says a lot about how we can comprehend, interpret and empathize with the stories of those around us in real life. Evidence suggests there is a positive correlation not only between reading and social cognition, but more importantly between reading and empathy.


The bottom half and debt. The bottom 60% of income-earners have accounted for most of the rise in spending even as their finances worsened. Tepid wage growth causes middle and lower-income Americans to dip into their savings and borrow more even with a hot job market and other signs of economic health (more jobs does not mean higher wages).




Keep Climbing,
          The Alchanati Campbell and Associates Team