Eagle Eye Opener: Student Loan Woes Soar; California’s Economy Improves; S&P 500 Posts Best January in 15 Years

Eagle Eye Opener

Brain Bubble — The 900-Billion Pound Gorilla in the Room (YahooFinance)

On Wednesday, the TransUnion credit reporting agency announced the total amount of student loans outstanding has reached $900 billion. And roughly 33% of that enormous figure — approximately $300 billion — has been categorized as subprime student loans. Subprime loans are those that fall 90 days behind repayment schedule and are considered the riskiest of all loans, in terms of recovery. So, as the number of jobless recent grads increases, and the number of subprime student loans spirals up, what pressure will that situation put on the dollar, and the markets? Maybe we’ll find out when school resumes next fall.

California Economic Rebound Rewarded by S&P (Bloomberg)

If California’s economy could talk, it no doubt would have mimicked a line from its most recent former governor’s Terminator movie, “I’ll be back.” And it would have been a straight shooter, as America’s most populous state is expected to sport an $851 million budget surplus when its fiscal year begins on July 1. In recognition of the state’s improving economy and deficit turnaround, Standard & Poor’s raised California’s credit rating to A (the sixth-highest ranking in total). As a result of the higher rating, investors put more of their funds into the state’s 30-year debt.

S&P 500 Posts Best January in 15 Years (Reuters)

Even though the S&P 500 ended the month by pulling back slightly, the index still gained 5.1 percent in January — the largest monthly rally since October 2011. And the 5.1 percent pop was the best January performance in 15 years — since 1997. Many analysts believe that the market upswing was due to stronger than expected Q4 earnings and the exuberance created by the government’s 11th hour actions to push back the fiscal cliff.  The next event that could be another strong catalyst for a market upswing is the U.S. jobs report that will be released today. Here’s hoping jobs were job one last month.

Exclusive  Smart Money Masters -- September 2017 Issue

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

"You must trust and believe in people or life becomes impossible." -- Anton Chekhov

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE