The financial industry’s stake in the Standard & Poor’s 500 index continues to shrink. The once-dominant sector dropped into second place in late May, as information-technology stocks took the top spot. On Monday, financials moved down another notch to third place, at 15 percent of the index, surpassed by energy stocks. Financial stocks are struggling to raise cash amid write-downs related to mortgage-linked debt. Energy stocks, meanwhile, are riding the wave of surging oil prices.
Boomers don’t share parents’ idea of retirement.
Many baby boomers grew up watching “Father Knows Best,” but they don’t seem to agree with Dad’s idea of a satisfying retirement. Most — 51 percent — say their retired parents appear “very satisfied” with their lifestyles, according to a recent survey by NAVA, the Association of Insured Retirement Solutions. But only 37 percent say they themselves would be “very satisfied” with their parents’ lifestyles. The survey found that baby boomers aren’t doing as well as their parents in financial practices, from staying out of debt to having an emergency fund. The telephone survey canvassed 1,004 adults, ages 45 to 65, with one or both retired parents alive.
The margin of error is plus or minus 3.1 percentage points.
Utah enjoys fastest growth.
Quick, what was the fastest-growing state economy in 2007? No, it wasn’t a state that boasts a financial center, such as New York, California or Illinois. It was Utah. The state enjoyed 7.9 percent growth in gross state product from the year earlier. New York was second at 7.3 percent. Last in the country was Delaware, which grew just 0.9 percent. Utah benefited from growth across the manufacturing, retail and business-service sectors, says Michael Lynch, regional economist for Global Insight.
U.S. cities fall among financial centers.
Cities in fast-growing emerging markets are climbing the ranks of influential global financial centers. London remains the premier city, according to MasterCard, which ranks cities on economic stability, ease of doing business and livability, among other factors. But Shanghai had the largest jump in overall rank, moving up eight spots to 24. Other fast climbers include Moscow (No. 51); Tel Aviv, Israel (45); Bogotá, Colombia (62); and Mumbai, India (48). Falling down the rankings are U.S. cities. Los Angeles, for example, dropped out of the top 10.
Most influential cities
1. London
2. New York
3. Tokyo
4. Singapore
5. Chicago
Source: MasterCard
Stan Choe and Ji Qi, The Associated Press
