Markets & Economy

Quantitative Tightening Could Accelerate In 2018

By
By

Reading Time: 4 minutes Although Yellen is a ‘lame duck’ central banker now that Jerome Powell was selected to take the helm in February, she’s still making headlines for unorthodox statements. As you should be well aware, the yield curve is one of the best recession warnings that exist, something we’ve discussed previously in…CONTINUE READING

50% Of Households Own No Stocks

By
By

Reading Time: 4 minutes When the Fed implemented QE, one of the benefits of it was said to be the wealth effect. The wealth effect is the benefit the economy gets from stock price appreciation. In theory, people who make money in the stock market are supposed to spend more money which helps the…CONTINUE READING

Housing: There’s Good News & Bad News

By
By

Reading Time: 4 minutes For your reference, we’ve discussed housing in previous articles: What Comes Next For Housing Prices/Rent? The New Trend In Housing The Future of US Housing Market Is US Housing In A Bubble, Again? As mentioned previously, the United States has been experiencing a decline in the homeownership rate. It’s important to…CONTINUE READING

Hawkish Fed Could Force Another Recession in 2019

By
By

Reading Time: 4 minutes As we’ve discussed in previous articles, the wage growth for production & non-supervisory workers isn’t where it should be according to some metrics. The chart below illustrates this point perfectly as the job openings and labor turnover survey shows hiring has picked up, but wage growth hasn’t. The Atlanta Fed…CONTINUE READING

Why CAPEX Might Not Increase

By
By

Reading Time: 5 minutes We’ve previously discussed the expansion of stock buybacks in a few articles, notably: Are Stock Buybacks Good Or Bad?, Do Stock Buybacks Deserve The Blame For Everything? and Stock Buybacks Harm US Competitiveness. The capital returned to shareholders has been elevated during this market cycle. This trend has caused some economists and investors…CONTINUE READING

1 2 3 13