Monthly Archives - August 2018

Jerome Powell

New Fed Chairman Is Just as Clueless as All the Others

Fed Chairman Jerome Powell attended his first Jackson Hole symposium as Chairman last week. His inaugural speech to the Kansas City Fed’s annual event was widely anticipated and closely watched by market observers. And to no one’s surprise, his understanding of the economy is just as flawed as that of his predecessors. Rather than understanding the economy as a process of discovery by which individuals come together spontaneously to create markets and exchange goods, Powell follows the mechanistic model [...]

stock market

When Everyone Says We’re Not in a Bubble, That Means We’re in a Bubble

Some of the highest-flying stocks of the past few years have been tech stocks. With the rise of cryptocurrencies and the creation of “disruptive” companies such as Uber and Airbnb, investors have been falling all over themselves in an attempt to cash in on the latest tech boom. Whether it’s investing in newer companies such as Tesla or established players such as Amazon and Apple, many investors believe that tech stocks will only continue to climb in the future. [...]


Are Millennials Really Different From Previous Generations?

The millennial generation, those born between about 1981 and 1996, has been the subject of a lot of press. Millennials differ significantly from their parents in their consumption patterns, particularly when it comes to homeownership. If you’ve been keeping tabs on the housing market in the past few years, you probably are aware that housing prices continue to rise far faster than inflation. Those continuous increases in price have led to declining sales, and particularly low sales to millennials. [...]


President Trump Continues to Pressure the Fed

Only a few days before Fed Chairman Jerome Powell is set to deliver his first address to the Kansas City Fed’s annual Jackson Hole summer gathering, President Trump has made it increasingly clear that he isn’t happy with the Fed continuing to raise interest rates. According to Trump, “I’m not thrilled with his raising of interest rates, no.” Of course, the federal funds rate remains historically low, with the current target set at 1.75-2.00 percent. Aside from a few instances [...]


US Government Debt Problem Is Spiraling Out of Control

A recent publication by the Congressional Budget Office (CBO) highlighted the grave danger that faces the US economy as the government’s debt position continues to spiral out of control. The US national debt has already increased to more than 100% of GDP, and under certain scenarios CBO predicts that could reach as high as 165% in just 20 years. That is an enormous increase that should greatly worry every American. It’s important to remember, too, that projections of any sort, [...]

retirement myths

Some Common Retirement Myths Debunked

Most Americans are serious about saving for their retirement. The dream of finally being free from being tied to a job, being able to travel and do what you want, has always appealed to many people. And that’s why retirement planning has become such a large and lucrative industry. But many people unwittingly make mistakes in their retirement planning, led astray by common myths and misperceptions that cause them to make the wrong decisions that end up costing them [...]

federal reserve

The Fed Continues to See No Problem With Inflation

Chicago Fed President Charles Evans made headlines recently with his comments about higher inflation not being a problem. While the Fed has set a target of 2% for price inflation, and worried for years that inflation was lower than that figure, recent data indicates that inflation is trending higher and will continue to rise. According to the Bureau of Labor Statistics, the consumer price index (CPI) reached 2.9% year-on-year in July, while the producer price index (PPI) reached 3.3%. [...]

housing market

Housing Market Continues to Confound Experts

Housing prices throughout the United States continue to rise, with recent data showing that prices increased nearly 7% from a year ago. That’s the fourteenth consecutive month of price increases, an incredible run. And while that will eventually have to come to an end, when will that happen? For more and more Americans who want to buy houses, the rising cost of housing is keeping them from being able to live the American dream. A combination of rising house prices [...]


Tech Stocks Have Become the Darlings of Investors, But Beware Dotcom 2.0

Investors aren’t really any different than any other human being. They, like many others, enjoy new, shiny things. In a field in which you constantly have to reassess your investment aims, your investment performance, and your investment portfolio, there is always strong pressure to shake things up, invest in new and different assets, and try something that’s groundbreaking. Tech stocks have filled that niche for the past several years, as investors have shaken off their wariness in the aftermath of [...]