2018 was a pretty dramatic year for most people. The markets soared to new heights and became extremely volatile. Bitcoin crashed. The Fed increased interest rates, the principal value of bonds fell, yields rose and inflation ticked up past the 2% mark the Fed had declared its target. The value of assets, the ability to… Read more »
Posts Categorized: The Economy
The Market-How High is High?
The Market-How High is High? Remember the Crash of 1987, the S&L and Commercial Real Estate Crises of the Early 90’s, the Bursting of the Internet Bubble in March of 2000, 9/11, the Closing of the Markets for Two Weeks, the Ensuing 2001-2003 Recession, the 2008 Financial Crises. Has a Pro Business President Who Says… Read more »
Is the Markets Narrative Changing?
Could Low Interest Rates and the Low Cost of Energy Propel the Markets Higher? The current thesis that low energy prices creates a proxy and is indicative of poor GDP performance due to a lack of demand, manifested by the oversupply of energy, may initially create dislocation within certain industries. Namely, oil and gas companies,… Read more »
Was the Fed Forced to Go Wrong With Quantitative Easing?
Did Congress force the Federal Reserve to go wrong with the bond-buying program known as quantitative easing? The cost of quantitative easing according to strategists such as Athanasios Vamvakidis at Bank of America could be the Federal Reserve’s unconventional monetary policy and its relationship with financial markets. He argues “excessive reliance on unconventional monetary policy” can… Read more »
THE EMPLOYMENT SITUATION – BLS Report
Released October 2nd 2015 for SEPTEMBER 2015 The Bureau of Labor Statistics reported Total Nonfarm Payroll Employment Increased by 142,000 in September, and the unemployment rate was unchanged at 5.1 percent, Job gains occurred in health care and information, while mining employment fell. Household Survey Data: In September, the unemployment rate held at 5.1 percent,… Read more »
ISM Index Falls to 49 Signaling Contraction
Market Watch Reported The Institute for Supply Management Index Fell to 49 from 50.7% in April. The Index was expected to rise to 51. This was the ISM Index’s Third Straight Monthly Decline. ISM Index Readings Below 50 Indicate Contraction for Manufactures. Readings Above 50 Indicate Expansion. “Several Comments From [Executives] Indicate a Flattening or… Read more »
May Manufacturing Index Rises
The May Manufacturing Purchasing Managers Index Rose to 52.3 from 52.1 in April. Aprils’ Level was a 6 Month Low. The Initial Estimate for May was 51.9. “The May Survey Paints a Downbeat Picture of U.S. Manufacturing Business Conditions. Output, Order Books and Employment are All Growing Modestly, Suggesting the Sector is at Risk of… Read more »
Bernanke to Testify on Economic Outlook
The Concerns About the Economy, the Markets Hitting New Highs and the Debate About the Decoupling of the Markets From the Real Economy May be About to Get Some More Definition Wednesday. The Prevailing View is That the Markets Recent Rise is Fueled by Quantitative Easing and the Fed’s Purchases of $85 Million of Bonds… Read more »
The Business Cycle, Why It’s Important
The Business Cycle. It has four stages. They Include: Recession Trough Expansion Peak The four stages of the business cycle helps companies, organizations, government and investors determine how to allocate capital. This is because the stage of the Business Cycle helps determine which Industries, companies and investments may outperform others. This is useful not only… Read more »
Unemployment Falls, Markets Rise
It’s Been a Wild and Wooly Week for the Markets This Past Week. Unemployment Dropped to 7.5%, The Dow Broke 15,000, the S&P 500 Closed at 1614, the NASDAQ Finished at 3378 and the 10 Year Treasury Stands at 1.75%. You Can See the Details at: https://www.bloomberg.com/news/2013-05-03/s-p-500-surpasses-1-600-as-u-s-stocks-advance-for-second-week.html The Fly in the Ointment is That the… Read more »
