The Dow Jones Industrials Average and S&P 500 are breathing down the neck of record highs set last Fall. Some take that as a sign to sell, time to shift out of equities and realize gains. We think that would be a mistake. At the end of last year, we forecast the Dow would finish [...]
Often, new clients come to us mired in the minutiae of one or two aspects of their financial life but without having a good grasp of the big picture. This is partially a result of the media, be it advertising, pundits or articles, focusing on minutiae and not necessarily accurately. So we labor to refocus [...]
What a difference a month makes. Last month many economists had pushed down their estimates for first quarter economic growth to near zero. The Atlanta Fed's "GDP Now" model was projecting real GDP growth at a 0.2% annual rate in Q1, which would have been the slowest growth since the weather-related negative reading in the [...]
We've been "Comrades in Supply-side Arms" with Stephen Moore (now a Federal Reserve nominee) and Larry Kudlow (Administration Economist) for decades, with very few disagreements on economic policy. However, with both having called for a 50 basis point cut in short-term rates, we find ourselves in total disagreement with their conclusion. They both make supply-side [...]
It feels like we are living in the Land of Oz and the Fed is the "all-powerful" wizard in control. From just about every significant group of thought leaders – the press, politicians, economists, analysts, and government officials – the narrative of the past twelve years has been all about government and nothing about the [...]
The environment on Capitol Hill has made populism a bipartisan affair, with Republican Senator Marco Rubio now joining the fray with a call to tax corporate stock buybacks. His argument? Corporations are buying back stock instead of making productive investments. He's not alone in arguing that weak investment is the reason the economy isn't growing [...]
It's March 8, 2009. The market's down 56% from its all-time high, unemployment is over 8% and hurtling toward 10%, it's just been reported that real GDP dropped at a 6.2% annual rate in Q4 of 2008, and it feels like the world is coming to an end. You're tired, exhausted from living though this, [...]
Real GDP grew at a 2.6% annual rate in the fourth quarter, and while some analysts are overly occupied with this "slowdown" from the second and third quarter, we think time will prove it statistical noise. Even at 2.6%, the pace is a step up from the Plow Horse 2.2% annual rate from mid-2009 (when [...]
The clock is winding down, and the United Kingdom has some major decisions to make. Should it stay in the European Union or should it go? If it goes, under what terms? Some analysts and investors are concerned about a "Hard Brexit," in which the UK supposedly plunges into chaos as they crash out of [...]