Monthly Archives - October 2018

Trade relations with China are worsening

Continuing Deterioration of Relations With China Could Worsen the Coming Financial Crisis

For anyone hoping for a restoration of normal trade relations between China and the United States, last week’s Bloomberg report on Chinese government hardware hacking came as a devastating blow. If the allegations are true that Chinese spies managed covertly and surreptitiously to place microchips into servers used by Amazon, Apple, and other large American corporations, that will just provide more ammunition for the Trump administration to maintain its current position towards China or even to enact more tariffs [...]

Dig behind the numbers to assess asset performance

Dig Behind the Numbers to Find the Best Investments

While most investors know that past performance is no predictor of future performance, they nonetheless look at past performance as a potential indicator of the future. Particularly when you’re looking at mutual funds or index funds, judging fund managers on their ability to pick the right assets for a fund can be a very important part of doing your homework. But if you’re relying just on the numbers provided in fund prospectuses you could find yourself missing out on [...]

The Fed's accommodative monetary policy isn't over

Has the Fed Really Ended Its Accommodative Monetary Policy?

The Federal Open Market Committee (FOMC) voted last week to raise interest rates yet again, setting a target range this time of 2.00-2.25%. While that was expected by everyone and had been priced in already by markets, what took some people by surprise was the fact that the FOMC’s statement for the first time in years omitted the statement that the “stance of monetary policy remains accommodative.” That had many observers claiming that this latest interest rate bump marked [...]

Insider stock selling

Insider Stock Selling Increasing as Buybacks Reach Record Highs

According to the latest estimates, stock buybacks will have reached an all-time high of $1 trillion this year. That’s a 46% increase from last year, and far higher than the previous high reached in, you guessed it, 2007. And that estimate could even be conservative, given that we’re still only three quarters into the year and stock prices have in recent weeks climbed back to record highs. Those high stock prices have spurred corporate insiders to dramatically increase their rates [...]