Igor Suka / Getty Images Experts warn that retirees who seek safety in bonds and cash may be overlooking the larger risks: inflation and the possibility of outliving their assets. Key Takeaways In a recent survey of over 1,000 investors, about 86% of high-risk retirees failed to meet a basic asset diversification benchmark. Financial experts caution against overly relying on cash and bonds to avoid market risk and instead recommend balancing cash, bonds, stocks, and other investments for long-term grow ...

Core Insights - Retirement is particularly challenging for single investors, who often lack the financial strategies that coupled investors utilize to mitigate market risks [2][5] - A significant portion of single investors express concerns about their ability to retire, with nearly 20% fearing they won't be able to retire at all [2][5] Financial Preparedness - Nearly half of single investors expect to need up to $600,000 in retirement savings to feel secure, yet less than 25% have saved at least $250,000 [4] - Less than 20% of single investors have accumulated $500,000 or more in retirement savings [4] Financial Strategies - Single investors are less likely to engage in financial strategies such as portfolio diversification or seeking professional planning assistance compared to those with partners [5]

Group 1 - Bank of America recommends clients allocate up to 4% of their portfolios in cryptocurrency following significant price fluctuations in Bitcoin [1][2] - Bitcoin experienced a decline from a $126,000 all-time high in October to lows near $82,000 in November, stabilizing around $90,000 by December 2 [1] - The firm plans to begin coverage of four Bitcoin ETFs in 2026, highlighting its extensive client base and digital user engagement [3] Group 2 - Corporate demand for cryptocurrencies increased in the last week of November, with crypto ETPs recording $1.07 billion in inflows, driven by expectations of a US rate cut [4] - Bitcoin, Ethereum, and XRP saw significant inflows of $464 million, $309 million, and a record $289 million, respectively [4] - Despite volatility, Strategy's shares rebounded after a slump, and Michael Saylor confirmed the purchase of an additional 130 BTC, raising total holdings to 650,000 BTC [5] Group 3 - JPMorgan's portfolio manager noted a divergence between Bitcoin's negative performance in November and Gold's rally above $4,000, indicating potential market risk [6] - This divergence may suggest investors are positioning for a steeper yield curve, which historically benefits gold [7] - Signs of economic strength were observed in big tech stocks and pharmaceutical firms, indicating resilience in the market [7]

Joining us right now to talk about the markets is Matt Powers with Powers Advisory Group. He's a managing partner there. Uh Matt, you think that there is still risk to that market and the biggest risk at this point is concentration in too few stocks.>> Yeah, good morning Becky. Thanks for having me. Uh you know, I don't want to come off sounding bearish because I'm not.And maybe kind of a cheesy analogy. I heard you guys have one here earlier. Uh you know, we're not necessarily worried about the pie growing ...

Core Insights - The Federal Reserve has cut the federal funds rate three times in 2024 and recently made a second cut in 2025, leading to a decline in deposit interest rates, including money market account (MMA) rates [1] - The national average rate for MMAs is currently 0.59%, while top high-yield accounts offer rates exceeding 4% APY, significantly higher than the national average [2][9] Group 1: Money Market Account Rates - The importance of comparing MMA rates is emphasized, as interest rates vary widely among banks, particularly online banks and credit unions, which often provide competitive offers [3][4] - Online banks have lower overhead costs due to their web-based operations, allowing them to offer higher deposit rates and lower fees [4] - Credit unions, as not-for-profit financial cooperatives, also provide competitive rates and fewer fees, although membership requirements may apply [5] Group 2: Features and Considerations of Money Market Accounts - Money market accounts are suitable for short-term savings goals, offering higher interest rates than regular savings accounts and easier access to funds compared to certificates of deposit (CDs) [5][7] - These accounts are considered low-risk and are FDIC-insured up to $250,000 per depositor, per institution, making them safer than money market funds [6] - Many MMAs require a minimum balance to earn the highest advertised rate, and failure to maintain this balance may result in fees or lower rates [6] Group 3: Access and Usage of Funds - While MMAs allow access to funds, they may limit the number of transactions per month, which is a consideration for those needing frequent access [7] - MMAs are recommended for individuals who want to earn more interest than a regular savings account without locking funds in a CD and can maintain the minimum balance to avoid fees [7][8]

Stablecoin investing has shifted:2014: the question was whether anyone would use a stablecoin.2025: the question is which issuers can execute well enough to win a demand-heavy but competitive market.Market-risk eras reward startups; execution-risk eras reward incumbents. https://t.co/UrQSDIdhfNBen O'Neill (@benhoneill):Building a stablecoin-based business is incredibly tough to monetize at scale. Similar to AI, the growth may be eye-popping for many start ups, but margin is a much different conversation.Alm ...

Market Risk Prediction - Traders construct models aiming to forecast market risk based on external factors that could trigger volatility spikes [1] - The effectiveness of these strategies in predicting market risk is questionable [1]

Core Insights - The Federal Reserve has cut the federal funds rate three times in 2024 and made its first rate cut in 2025, leading to a decline in deposit interest rates, including money market account (MMA) rates [1] - The national average rate for MMAs is currently 0.59%, while top high-yield accounts offer rates exceeding 4% APY, significantly higher than the national average [2][9] Group 1: Money Market Account Rates - The importance of comparing MMA rates is emphasized, as interest rates vary widely among banks, particularly online banks and credit unions, which offer competitive rates [3][4] - Online banks have lower overhead costs due to their web-based operations, allowing them to provide higher deposit rates and lower fees [4] - Credit unions, as not-for-profit financial cooperatives, also offer competitive rates and fewer fees, although membership requirements may apply [5] Group 2: Features and Considerations of Money Market Accounts - Money market accounts are suitable for short-term savings goals, offering higher interest rates than regular savings accounts and easier access to funds compared to certificates of deposit (CDs) [5][7] - These accounts are considered low-risk and are FDIC-insured up to $250,000 per depositor, per institution, making them safer than money market funds [6] - Many MMAs require a minimum balance to earn the highest advertised rate, and failure to maintain this balance may result in fees or lower rates [6] Group 3: Accessibility and Usage - While MMAs allow access to funds, they may limit the number of transactions per month, which is a consideration for those needing frequent access [7] - MMAs are recommended for individuals looking to earn more interest than a regular savings account without locking funds in a CD, and for those who can maintain the minimum balance to avoid fees [7][8]

Market Sentiment and Risk Assessment - The market experienced a pullback, down 15% to 2%, bringing it back to levels seen about a week and a half prior, highlighting the ever-present risks [1][2][4] - A sense of complacency had settled into the market, requiring a reminder that risks are always present and potentially underestimated [3][4] - Institutional investors are expressing increased nervousness about the market situation, though many remain long on their positions [5] - Investors are holding positions in leading stocks to avoid underperformance, despite potential concerns [6] Geopolitical and Economic Factors - News regarding rare earth quotas initially failed to trigger a market reaction [7] - Escalatory language from the president, potentially related to tariffs, served as a catalyst for market movement [8] - The market reaction is viewed as a potential start to a larger trend, contingent on whether buyers emerge to "buy the dip" [9] Volatility and Hedging - The VIX (volatility index) surged from 16 to 22 rapidly, indicating that some participants were caught off guard [11] - The VIX is considered a proxy for institutional hedging demand, which was not significantly high prior to the market shift [13] - Some market participants had been selling implied volatility and were forced to adjust their positions quickly [14]

Discover how the CBOE Volatility Index (VIX) helps investors gauge market risk and fear by measuring the 30-day volatility expectations of the S&P 500 Index. https://t.co/lx3o7i6mf8 ...