Market Summary The U.S. As expected, the U.S. Federal Reserve cut the benchmark fed funds rate by 0.25% on Wednesday, as expected, and also ended the runoff of its portfolio of bonds a month early. Fed Chair Powell said, “The outlook for the U.S. economy remains favorable and this Read more…
America’s College Funding Debacle Has Deep Roots From tuition-free college to student loan forgiveness, the Democratic contenders to challenge President Trump are floating many proposals to address the troubled U.S. higher education system. Those troubles are legion — essentially, education costs that have been rising at several times the rate Read more…
Executive Summary 1. Trade wars, geopolitics, and the fate of the yuan. Beneath the trade-war back-and-forth is a stark reality: the era of Chinas massive accumulation of foreign exchange reserves is ending, and in coming years, Chinas currency is likely headed for a significant decline. Saber rattling goes on as Read more…
Executive Summary 1. Deflationary tech is here to stay. In his May press conference, Fed Chair Jerome Powell cited what he believed were “transitory factors” that resulted in a low inflation print over the past 12 months. Although many economists and officials talk about inflation data as if they were Read more…
Trade War Static: Stay Focused On the Big Picture Just as markets seemed to be happily pricing in a resolution to the yearlong trade conflict between China and the United States, fresh difficulties have emerged, throwing the outcome into doubt. Global stock markets swooned in response to the tweets… a Read more…
Market Summary for Week of February 22, 2019 This week we are keeping it short. We remain bullish on the U.S., and on several foreign markets. The U.S. market is still a buy, in our opinion. Breakouts of the type we have recently seen offer opportunity for higher U.S. stock Read more…
The U.S. Economy and Markets In spite of slight deceleration from the GDP growth rate posted in 2018, the U.S. economy continues to be strong, and we anticipate that as 2019 unfolds, growth will strengthen. U.S. markets have rapidly recovered from their fourth-quarter swoon, and while we believe that Read more…
The trade conflict is still underway; we just read this morning about the statement made by China’s vice president, Wang Qishan, criticizing the U.S. administration’s trade policies at Davos. We continue to believe that a deal will be reached in the near term on the disagreements that are easier to Read more…
As we have done for decades, we are writing with our favorite global investments for 2019. This prediction is for the first half of 2019. If there is no world recession in 2019 and one is not expected for 2020, or if a good trade settlement is reached with China, Read more…
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