Eagle Asset Management's Richard Skeppstrom provides his market perspective for July. "Prudence is restraining growth? Second-quarter domestic economic growth has not bounced as much as expected. That’s curious because the weather has improved and the collapse in the price of oil put money in folks’ pockets. I’ve read in a few different places that we are saving the money that we would have spent on fuel. Saving? Like, not spending? Frankly, I’d dismissed the whole notion as absurd. Americans spend. However, that was until I saw a brief note describing Larry Fink’s theory on the matter. He’s the maestro of BlackRock and I pay attention when he speaks (he manages a few trillion dollars more than me). Mr. Fink believes very low interest rates are forcing people to save more for retirement. That’s entirely logical but hard to embrace since we (a large swath of the adult population) have ignored the economic realities of retirement for as long as I can remember.
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