Financial Term of the Day: Double Dip
In the financial media lately, there's been a lot of chatter around the concept of a "double-dip." In short, this term refers to a situation in which GDP is on the rise out of a recession, but then begins to fall again, signifying another recession.
The chart, courtesy of Macroeconomic Advisers, shows monthly U.S. nominal GDP figures from the first two quarters of 2010. As you can see, nominal GDP rose through April but started to decline in May and June.
So what does this mean? Are we, in fact, heading into another recession? It’s too soon to say–The Economist cautions readers to take the figures with a grain of salt because of the instability of monthly numbers. In the meantime, as always, it’s important to practice healthy long-term investing strategies.
We recommend that you shouldn’t base your investing decisions on near-term worries; it’s better to think about your long-term goals. Betterment’s investment advice tools help you figure out how long your saving for, and how much risk you’re comfortable with. That’s the right way to think about investing, rather than reacting to current events, because current events and future expectations are already reflected in stock prices. What happens next is anybody’s guess, but in the long term, the market tends to rise.
Using Investment Goals At Betterment
Goal-based investing. The idea is prized among financial advisors—and our team at Betterment—but to the everyday investor, it’s often difficult to put into practice.
Goal-Based Investing: A Decade In Review
As we all look forward to and plan for the future, let’s stop and take a look at the past decade to see what we can learn from it.
Congress Just Passed the SECURE Act—Here’s What You Should Know
The government is taking steps to make your retirement more secure. Find out how the new changes might affect you.
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