The Long Launch: Supporting Adult Children Without Dampening Their Drive
Many parents expect an empty nest after college. Instead, there may be a recent graduate back in the guest room, or living in an apartment still funded by the Bank of Mom and Dad. This phenomenon is surprisingly common. In 2023, 18% of adults ages 25 to 34 were living in a parent’s home, and half of parents with adult children say they provide regular financial assistance to one or more of their kids (Pew Research).
AI Pushes Markets Forward Despite Rising Yields
In the third quarter, markets absorbed higher rates, rising oil prices, and renewed inflation concerns, and continued to advance. Strong earnings, consumer spending, and sustained AI-related investment kept growth intact, although that CAPEX may also be reinforcing a higher-for-longer rate environment. The result for investors is a broader opportunity set, highlighted by improved income in bonds, continued support for risk assets, and a greater premium on selectivity.
Economic Commentary: Trading Partner Problems
Euro Zone inflation rose to an uncomfortably high 3.8% in August. More inflation and economic data for Europe will be forthcoming this week, along with a number of speeches by European Central Bank officials. Despite signs of a further slowing in economic growth, it is highly likely that the ECB will continue to take a tough line on raising interest rates in an effort to slow the escalation of prices.