THE WEEK ON WALL STREET
Stocks fell last week, buffeted by concerns about stock price valuations and a possible government shutdown.
The S&P 500 Index declined 0.31 percent, while the Nasdaq Composite Index lost 0.65 percent. The Dow Jones Industrial Average slipped 0.15 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 0.34 percent.
FACT OF THE WEEK
On September 27, 1822, French scholar Jean-François Champollion announces he has solved one of history's greatest mysteries: deciphering the Rosetta Stone. By unlocking the language of Egyptian hieroglyphs, he revealed long-held secrets of that ancient civilization.
MARKET MINUTE
Stocks Under Pressure
The S&P 500 and the small-cap index Russell 2000 hit all-time intraday highs on Tuesday before trending lower. The decline turned into a three-day retreat for stocks.
Adding to the selling pressure was Federal Reserve Chair Powell, who made cautious comments on stock price valuations on Tuesday. Investors were also watching a possible government shutdown as Congressional budget deliberations appeared to stall.
It was the first time in six months that all three averages (Dow, S&P 500, and Nasdaq) declined over three consecutive sessions.
Stocks rebounded Friday after the Personal Consumption & Expenditures (PCE) Index—the Fed's preferred inflation measure—was in line with expectations. The news appeared to reassure investors that the Fed would move ahead with its “penciled-in" rate adjustments for the remainder of this year.
Economic Snapshot
A flurry of updated economic data hit last week. Here are the key takeaways:
Overall, the indicators suggested a strong economy. The final estimate of Q2 gross domestic product was 3.8 percent, stronger than previous reports. Durable goods orders rebounded in August, driven by a surge in aircraft orders. And weekly jobless claims fell.
The fact that the PCE was in line with estimates—core inflation of 2.9 percent year over year—was welcomed news for investors. The report seemed to support Fed Chair Powell’s position, who on Tuesday suggested that weakness in the labor market outweighed concerns about stubborn inflation.
FINANCIAL STRATEGY OF THE WEEK
Volunteering in Retirement
“This generation got no destination to hold... We are volunteers of America”
“Volunteers” by Jefferson Airplane
Those of a certain age will recall these Jefferson Airplane lyrics as a call to action, though for a different period and place. Even with the passage of time and through a lifetime of changes, the desire of baby boomers to make an impact on the world has not diminished.
Retirement is no longer about the hammock or unending hours of golf. It is a period of rejuvenation, second chances, and renewed growth. For many, this new phase includes contributing their time and talents to an organization in need.
Before You Start
An important first step is to engage in honest self-assessment. Inventory your skill set and interests. This will help identify what sort of volunteering opportunities are the best match for you.
Determine the commitment you are willing to make. Is this something that you want to devote 5-10 hours a week to, or are you willing to commit to more time? Is this something you want to do locally, around the nation, or even the globe? Will this volunteering be done individually, as a couple, or as a group?
Survey the Waters
There are plenty of resources to get a good view of the opportunities that exist. One place to start is by asking friends, family, and colleagues. Another option is to use one or more of the many tools created to help identify volunteering ideas that may deserve your consideration. For instance, the AmeriCorps website is one such tool run by the federal government. You may also want to take a look at the VolunteerMatch website.
Another approach may be to pick charities that you support and check out their volunteer opportunities. Don’t be afraid to call them since some opportunities may not be advertised.
If you do choose to volunteer during retirement, you may find that you will receive as much as you give.