We all learned a thing or two about Panama last week.
The country is not the home of the Panama hat, which is made in Ecuador. However, it is the only place in the world where you can watch the sun rise on the Pacific ... Read More
It’s like déjà vu all over again!
This wasn’t the first quarter, or even the first year, that bond markets have not performed in the way Wall Street strategists have expected.
During 2014, bond yields were expected to rise. They did not.
During 2015, bonds were predicted to ... Read More
Are corporations in the United States struggling?
In its cover article last week, The Economist (a British publication), suggested there is not enough competition among American companies. It pointed out:
“Aggregate domestic profits are at near-record levels relative to GDP… High profits might be a sign of ... Read More
There is ongoing debate about whether markets behave in rational ways.
The efficient market hypothesis suggests the stock market does a good job of setting share prices which reflect all relevant information. In other words, stocks generally trade at fair value.
The Economist reported there are ... Read More
Stim-u-late mar-kets! Come on! It’s monetary easing.*
The European Central Bank (ECB) was singing a tune that invigorated financial markets last week. The Wall Street Journal explained:
“The fresh measures included cuts to all three of the ECB’s main interest rates, €20 billion a ... Read More
When Mark Twain’s death was reported in the United States, he was alive and well in London. He responded to news accounts with a note saying, “The report of my death was an exaggeration.”
Last week’s jobs data suggest the same is true of reports that ... Read More
It wasn’t as entertaining as the Fantastic Four, The Magnificent Seven, or Ocean’s 11 but, last week, we had an opportunity to watch the Group of 20 (G20).
The G20 stars finance ministers and central bankers from 19 countries and the European Union as well as ... Read More
And the economic data says…
The United States economy is doing pretty well. So well that a March rate hike by the Federal Reserve is not entirely out of the question. Barron’s described the situation like this:
“Squawking pessimism can't drown out what is a ... Read More
Are markets suffering from excessive worry?
Last week, markets headed south because investors were concerned about the possibility of negative interest rates in the United States – even though the U.S. Federal Reserve has been tightening monetary policy (i.e., they’ve been raising interest rates).
The worries appear ... Read More
There was bad news and good news in last Friday’s unemployment report.
In the negative column, fewer jobs were created in the United States than economists had predicted, and January’s jobs gains were not as strong as December’s had been. In addition, the December jobs increase ... Read More