<p class=“MsoNormal“>A target-date fund can
be an <a target=“_blank“ href=“https://www.fxrevenues.org/“ target=“_blank“>excellent investment tool</a> for
hands-off investors who are near or already retired.</p><p class=“MsoNormal“>With target-date funds,
investors can obtain a suitable, stable risk-return profile through asset
allocation.</p><p class=“MsoNormal“>As your retirement
draws near, the fund will periodically and automatically readjust its
investments, following the performance of a safer asset mix, such as ramping up
your bond holdings and reducing your stock holdings.</p><p class=“MsoNormal“>Still, a target-date
fund has advantages and disadvantages that should be considered carefully.</p><p class=“MsoNormal“>Why Consider a Target
Date Fund?</p><p class=“MsoListParagraph“>1.
Helps Young Employees</p><p class=“MsoNormal“>A target date fund can
be significantly helpful to you if you’re a young employee. That’s mainly
because of the amount of time you have.</p><p class=“MsoNormal“>You have a long
investment horizon as someone working in their 20s or 30s. Therefore, in a target
date fund’s early year, your investments should primarily include stocks since
they are typically a good bet for generating long-term returns.</p><p class=“MsoListParagraph“>2.
Instant Diversification</p><p class=“MsoNormal“>A single target date
fund can provide you with a well-diversified portfolio of domestic and
international stocks and bonds.</p><p class=“MsoNormal“>In addition, target
date funds’ asset allocation is readjusted as you near retirement. So, if
you’re investments were initially focused on stocks, the fund will shift the
focus to bonds as you prepare for retirement.</p><p class=“MsoListParagraph“>3.
Rebalances on the Investor’s Behalf</p><p class=“MsoNormal“>Target date funds are
built to perform the rebalancing on the investor’s behalf.</p><p class=“MsoNormal“>While an investor’s
risk tolerance becomes less and less as they age, they may still end up with an
investment portfolio that doesn’t align with their needs. For example, a market
in a solid bullish condition could leave you having too much money in stocks and
fewer bets on bonds.</p><p class=“MsoNormal“>With a target date
fund, you could go for years without checking your retirement investments and
remain appropriately invested.</p><p class=“MsoNormal“>Why Think Twice About Opting
for a Target Date Fund?</p><p class=“MsoListParagraph“>1.
One-Size-Fits-All Nature</p><p class=“MsoNormal“>The one-size-fits-all
nature can be a huge disadvantage of target-date funds since this makes the
fund quite incapable of considering or adapting to the current state of the
economy.</p><p class=“MsoNormal“>For example, a target
date fund’s default concept is that bonds will always be less risky than stocks.
However, this is not entirely accurate in all economic situations, especially
right now when we are seeing higher inflation and interest rates.</p><p class=“MsoNormal“>Because of this
one-size-fits-all nature, investors can be caught off guard during unexpected
economic events.</p><p class=“MsoListParagraph“>2.
Lack of Diversity</p><p class=“MsoNormal“>Target-date funds have
a simple design, but this may not work for some investors who may need a
broader mix of assets than stocks and bonds. That’s because they may have to
consider more than their estimated retirement year, like existing assets such
as their <a target=“_blank“ href=“https://fxrevenues.com/signup“>real estate or savings</a>. </p><p class=“MsoListParagraph“>3.
Complicated Fee Structure</p><p class=“MsoNormal“>The fee structure of a
target-date fund can be complicated to grasp, as it has a management fee plus a
fund-of-funds management fee.</p><p class=“MsoNormal“>That means your
target-date fund portfolio doesn’t only have one mutual fund. Instead, it
consists of several mutual funds with different expense ratios. </p><p class=“MsoNormal“>Therefore, you should
properly research what the firm may charge you, as the fee structures vary
depending on the fund company.</p>

This article was written by ForexLive at forexlive.com.

<p style=““ class=“text-align-justify“>The rejection close to 145.00 this week has been a key point to note for the dollar and the sharp retreat in USD/JPY has also seen other major currencies take advantage of the softer greenback towards the end of the week. The added jawboning by Japanese officials earlier in the day <a target=“_blank“ href=“https://www.forexlive.com/centralbank/usdjpy-kicked-lower-by-suzuki-matsuno-and-then-kuroda-20220909/“ target=“_blank“>here</a> is also helping, with Kuroda outlining that when the pair moves by 200 to 300 pips, then it can be considered a ‚rapid‘ move. That said, I’ll bet he has no complaints about the 200 pips retracement today.</p><p style=““ class=“text-align-justify“>On the balance of things, I’d still argue that Japanese officials are still fine with a falling currency. I mean they know that they are not in a spot to contest otherwise with the BOJ still maintaining an ultra easy monetary policy at the moment. But they are just trying to curb any sudden depreciation and with a rise in USD/JPY from 140.50 to 145.00 within a few days, they saw the need to keep things in check before traders got too carried away.</p><p style=““ class=“text-align-justify“>Looking at the chart above, the drop sees a break back below the 100-hour moving average (red line) at 142.81 and now price action is caught in between that and the 200-hour moving average (blue line) at 141.10. That sees the near-term bias more neutral and outlines the technical levels in play in the short-term.</p><p style=““ class=“text-align-justify“>Further support is seen closer to the 140.00 handle while key resistance remains at the 145.00 handle in the bigger picture.</p><p style=““ class=“text-align-justify“>But for now, the retreat is still keeping more measured within the levels above as it moves in tandem with the dollar decline seen elsewhere as pointed out earlier:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-slides-further-down-1-against-the-euro-and-sterling-20220909/“ target=“_blank“>Dollar slides further, down 1% against the euro and sterling</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/risk-trades-rejoice-on-dollar-correction-20220909/“ target=“_blank“>Risk trades rejoice on dollar correction</a></li></ul>

This article was written by Justin Low at forexlive.com.

<p class=“MsoNormal“>Money Flow Index
Explained</p><p class=“MsoNormal“>The <a target=“_blank“ href=“https://demaxis.com/“ target=“_blank“>Money Flow Index</a> (IMF) is a technical indicator
that utilizes volume data and price in recognizing overbought or oversold
signals in an asset. Also, it could be used to identify divergences, which warn
of a trend alteration in price.</p><p class=“MsoNormal“>The oscillator is
moving between 0 and 100. A reading above 80 is deemed overbought, and an
interpretation below 10 is considered oversold. Even so, the levels 90 and 10
are also used as thresholds.</p><p class=“MsoNormal“>Calculating the Money
Flow Index</p><p class=“MsoNormal“>The following are the
several steps for calculating the Money Flow Index. It is recommended to do the
calculation using a spreadsheet rather than by hand.</p><p class=“MsoNormal“>Step 1: Compute the
typical price of each of the last 14 periods.</p><p class=“MsoNormal“>Step 2: For each
period, spot whether the common price was higher or lower compared to the
previous cycle. It will tell you if the raw money flow is positive or negative.</p><p class=“MsoNormal“>Step 3: Calculate the
raw money flow by multiplying the classic price by volume for that specific
period. Use negative or positive numbers depends on whether the term was up or
down.</p><p class=“MsoNormal“>Step 4: Compute the
money flow ratio by adding up all the positive money flows over the past 14
periods. Then, divide it by the negative money for flows for the same prior
course.</p><p class=“MsoNormal“>Step 5: Calculate the
Money Flow Index using by utilizing the ratio constituted in step four.</p><p class=“MsoNormal“>Step 6: Continue doing
the calculations as each new period ends by only using the data from the last
14 periods.</p><p class=“MsoNormal“>MFI’s Usage</p><p class=“MsoNormal“>One major way to use
the Money Flow Index is when there is a presence of divergence when the
oscillator is traversing in the opposite direction of the price. It is a hint
of a possible reversal in the prevailing price trend.</p><p class=“MsoNormal“>For instance, a very
high Money Flow Index that starts to decline below a reading of 80 while
underlying security continues to rise is a price reversal signal to the
pitfall.</p><p class=“MsoNormal“>On the other hand, a
very low MFI level that climbs above a reading of 20 while the implied security
continues to sell off is a signal of price reversal to the upper side.</p><p class=“MsoNormal“>Also, traders are
watching for larger divergences using multiple waves in the price and MFI. For
example, a stock hit a peak of $10.00 but pulled back to the $8.00 level. Then,
it rebounded higher to $12.00. </p><p class=“MsoNormal“>This means that the
price has made two successive higher, which is at the zone of $10.00 and
$12.00. If the MFI makes a lower higher when it reaches $12.00, the oscillator
is not confirming the new high. Accordingly, it could indicate a plunge in
price.</p><p class=“MsoNormal“>Furthermore, the
overbought and levels are used to indicate a possible trading chance. It is
believed that movements below 10 and above 90 are rare. Besides, traders observe
for the MFI to move back above 10 to <a target=“_blank“ href=“https://demaxis.com/Registration“ target=“_blank“>indicate
a long trade</a> and plummet below 90 to signal a short trade.</p>

This article was written by ForexLive at forexlive.com.

<p style=““ class=“text-align-justify“>The large option expiries at the parity level are arguably the key attraction for price action during the session and that seems to be holding the more or less narrow range for EUR/USD ahead of the ECB later today.</p><p style=““ class=“text-align-justify“>The ECB is in a rather unenviable spot as they are set to announce an aggressive 75 bps rate hike to try and put the inflation naysayers to bed. However, it comes at a cost of hurting an already spiralling economy – which looks set to enter a recession in the winter amid the impending energy crisis.</p><p style=““ class=“text-align-justify“>So, what are the key levels to watch ahead of the ECB decision?</p><p style=““ class=“text-align-justify“>In the event we do see any positive kneejerk reaction for the euro, the recent swing highs around 1.0075-90 will be ones to watch and I would expect sellers to lean on those levels to keep a lid on price action on the day.</p><p style=““ class=“text-align-justify“>As for downside risks, the 0.9900 handle remains the key one to watch on the daily chart.</p><p style=““ class=“text-align-justify“>I outlined some thoughts on the meeting <a target=“_blank“ href=“https://www.forexlive.com/news/welcome-to-ecb-day-20220908/“ target=“_blank“>here</a>. On the balance of things, I would expect the euro to remain pinned lower against the dollar and if we do see any form of bounce for whatever reason, that will make a good sell on the rally scenario.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The pair is up by 0.1% to 1.1530 levels with the low earlier touching 1.1477 in European morning trade. As much as the announcement by UK PM Truss is a welcome development for households, it still won’t be enough to really dig the UK out of a recession heading into next year.</p><p style=““ class=“text-align-justify“>Sure, there might be some relief to households but essentially it comes with a fiscal cost and the root of the energy problems are still not being addressed. In other words, this is another can being kicked down the road.</p><p style=““ class=“text-align-justify“>For me, the bounce in cable today seems to be a case of a rejection at the support near the March 2020 lows close to 1.1400:</p><p style=““ class=“text-align-justify“>It’s a modest bounce but buyers will have to do more to convince of a stronger rebound. The 200-hour moving average at 1.1575 currently will be a key near-term level to watch in that regard. Otherwise, I still maintain that the path of least resistance is for the quid to move lower so long as the BOE looks the more likely of the two (against the Fed) to fold first in the monetary policy tightening race.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Typical household will pay no more than £2,500 a year on energy bills</li><li>This will be in effect for two years from 1 October</li><li>The guarantee supercedes Ofgem’s price cap</li><li>Businesses will also be supported on energy costs</li><li>The support scheme for businesses will be for six months initially</li></ul><p style=““ class=“text-align-justify“>There’s no mention of the cost yet but previous reports have suggested that it should be at least £170 billion. In effect, this will make energy bills more affordable for UK households but essentially the cost is being spread out to the future.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The pair fell to a low of 143.45 earlier after remarks by Japan top currency diplomat Kanda <a target=“_blank“ href=“https://www.forexlive.com/news/japan-top-currency-diplomat-government-boj-is-extremely-worried-about-recent-yen-moves-20220908/“ target=“_blank“>here</a>. But as mentioned then, the warnings are merely still verbal intervention at the end of the day – even if they are a step up from what they used to previously remark on the currency.</p><p style=““ class=“text-align-justify“>USD/JPY has brushed aside that in a push back up to 144.00 now, up 0.2% on the day.</p><p style=““ class=“text-align-justify“>It must be noted that 145.00 remains a tough resistance point to break through and there is talk of knock out options at the figure level. That will make it even harder for buyers to chew through or touch that level to seek a further push higher. But at the same time, if we do see that layer give way, expect a quick shoot towards 147.00 next.</p>

This article was written by Justin Low at forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-stays-in-control-so-far-on-the-day-20220907/“>Dollar stays in control so far on the day</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-barkin-says-has-bias-towards-hiking-rates-more-quickly-rather-than-more-slowly-20220907/“>Fed’s Barkin says has bias towards hiking rates more quickly, rather than more slowly</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-bailey-inflation-target-is-very-important-for-the-uk-20220907/“>BOE’s Bailey: Inflation target is very important for the UK</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-tenreyro-we-should-be-going-slowly-when-there-is-a-lot-of-uncertainty-20220907/“>BOE’s Tenreyro: We should be going slowly when there is a lot of uncertainty</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eu-says-will-propose-a-cap-on-russian-gas-20220907/“>EU says will propose a cap on Russian gas</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/disappointing-chinese-trade-data-adds-to-concerns-on-global-outlook-20220907/“>Disappointing Chinese trade data adds to concerns on global outlook</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-q2-final-gdp-08-vs-06-qq-second-estimate-20220907/“>Eurozone Q2 final GDP +0.8% vs +0.6% q/q second estimate</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-july-industrial-production-03-vs-05-mm-expected-20220907/“>Germany July industrial production -0.3% vs -0.5% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-august-halifax-house-prices-04-vs-01-mm-prior-20220907/“>UK August Halifax house prices +0.4% vs -0.1% m/m prior</a></li></ul><p>Markets:</p><ul><li>USD leads, JPY lags on the day</li><li>European equities lower; S&P 500 futures down 0.1%</li><li>US 10-year yields down 0.6 bps to 3.334%</li><li>Gold up 0.1% to$1,702.41</li><li>WTI crude up 0.2% to $87.09</li><li>Bitcoin down 1.3% to $18,730</li></ul><p style=““ class=“text-align-justify“>The dollar is continuing its rampaging run higher as markets are seeing little alternatives to the current state of play. Equities are sluggish amid global economic concerns while bond yields are holding higher with Europe set to pile on debt to deal with the impending energy crisis in the region.</p><p style=““ class=“text-align-justify“>USD/JPY is a whisker away from 145.00, up over 200 pips today in a rather straightforward march to the key pyschological level. The capitulation is fueling the dollar advance, alongside a softer Chinese yuan – which is on approach towards 7.00 on the dollar.</p><p style=““ class=“text-align-justify“>Elsewhere, the euro remains sluggish and is looking to breach below 0.9900 against the greenback while GBP/USD is lurching towards the March 2020 low of 1.1409 – down 0.8% to 1.1425 currently.</p><p style=““ class=“text-align-justify“>Commodity currencies are also struggling with USD/CAD testing 1.3200 again while AUD/USD is down to near key support close to 0.6700 on the day. The Bank of Canada will be in focus for the former later today, so watch out for that.</p><p style=““ class=“text-align-justify“>With there being little else to work with for traders on the week, the dollar looks set to try and scale to new heights in the coming days unless Fed speakers have something to say about that before the FOMC blackout period and US CPI data next week.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The pair is falling to the lows for the day now, down 0.8% to 1.1425 as sellers set their sights on the March 2020 low at 1.1409 next. A break below that will open up the next downside leg for the pair and the pound’s woes aren’t helped by a surging US dollar in trading this week and today.</p><p style=““ class=“text-align-justify“>BOE policymakers were out speaking in parliament earlier and they didn’t really do much to exude confidence that they may lean towards a more aggressive rate hike next week. Bailey pretty much just tried to brush it all off by saying „don’t take today’s comments as an indication for what we may do next week“. That’s a weak hand to be playing at a time like this.</p><p style=““ class=“text-align-justify“>And when you throw in remarks on an economy heading towards recession and caution from Tenreyro as seen <a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-tenreyro-we-should-be-going-slowly-when-there-is-a-lot-of-uncertainty-20220907/“ target=“_blank“>here</a>, it is hardly convincing. All else being equal, the path of least resistance for cable looks to be a continued push lower and the technicals may support that even more once the March 2020 low gives way.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Prior -3.7%</li><li>Market index 258.1 vs 260.1 prior</li><li>Purchase index 197.8 vs 199.1 prior</li><li>Refinancing index 556.4 vs 562.5 prior</li><li>30-year mortgage rate 5.94% vs 5.80%</li></ul><p style=““ class=“text-align-justify“>Another week, another continued slump in mortgage activity as the average rate on the most popular mortgage tenor rises to its highest since mid-June, amid a spike in bond yields as well in the past week. The data here continues to point towards a worsening trend in the housing market so that it is still something to be wary about.</p>

This article was written by Justin Low at forexlive.com.