Breaking Down the Top Stories of 13 June Business News: What Will Affect Your Finances?
June 13, 2021, was a significant day of business news as several top stories were released that could potentially affect your finances. In this article, we will discuss the prominent news stories, what they mean for your financial future, and what actions you can take to stay ahead of the game.
1. Inflation Rates on the Rise
Inflation rates have been steady this year, but that may no longer be the case. The Consumer Price Index (CPI) rose 0.6% in May alone, the largest increase since August 2008. This rise in inflation is driven by the increased demand for goods and services as the economy reopens. However, this puts consumers at risk of heightened prices for goods and services in the near future.
To stay ahead of the game, consider investing in stocks and bonds that are inflation-proof or seeking out lower-cost alternatives. Additionally, you can adjust your budget to account for possible cost increases.
2. Proposed Corporate Tax Increase
President Joe Biden’s proposed infrastructure plan includes an increase in corporate taxes from 21% to 28%, among other changes. This proposal could have significant implications for businesses, which would likely pass on some or all of the added expenses to consumers.
Investing in stocks that are least affected by corporate tax changes, such as consumer staples, may shield you from being adversely affected. Additionally, consider how much capital gains tax would affect your investments if taxes do increase.
3. The Future of Remote Work
The future of remote work is hard to predict. Although the ability to work remotely has become the norm, there is no certainty about what will happen when people return to the office. Companies are currently debating whether or not to mandate a return to the office, but there isn’t a consensus yet.
If remote work has become a permanent part of your company, consider investing in your home office to increase your productivity. Additionally, start preparing for an eventual return to the office if it is required.
4. An Improved Job Market
The job market has been making a steady comeback since the start of the pandemic, and it seems to have reached new heights. May saw the addition of 559,000 jobs, bringing the unemployment rate down to 5.8%.
With an improved job market, consider investing in the stock market or diversifying your investment portfolio. Additionally, you can start developing new skills to make yourself marketable in the event of a job change.
5. Housing Market Predictions
The housing market has been on a wild ride in the past year, with record-low mortgage rates and a shortage of available homes. However, predictions suggest that the housing market will continue to grow, with home prices rising 6.2% over the next year.
To take advantage of the housing market growth, consider researching areas where property values are projected to rise. Alternatively, you can explore the option of refinancing your existing mortgage to take advantage of lower rates.
Conclusion:
In conclusion, June 13, 2021, was a significant day for business news. From rising inflation rates to the proposed corporate tax increase, there are several ways your finances could be affected. However, by keeping a watchful eye on trends and taking strategic actions, you can protect your finances from the effects of these changes.
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