How a higher-for-longer environment could benefit retirees

The recent April jobs report was weaker-than-expected, signaling a slowdown in the labor market. To discuss how the data could impact inflation and to offer guidance for retirees navigating this environment, Pointwealth Capital Management CEO and Founder Sandra Cho joins Wealth!

Cho states that while it "would be wonderful" if the recent jobs report contributed to lowering inflation, she views this scenario as unlikely, with inflationary pressures stubbornly persistent.

The Pointwealth founder suggests that if the slowdown in the labor market continues, it could indicate a reduction in the number of employed individuals, leading to "less people to buy things." This dynamic could prompt consumers to become more price-conscious, potentially easing pressure on prices — a scenario that "bodes well" for a potential Federal Reserve rate cut.

Amid these economic conditions, Cho highlights a potential silver lining for retirees. She notes that individuals are "finally getting a decent yield in bonds," which can benefit their retirement portfolios.

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This post was written by Angel Smith