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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%. [...]

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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 [...]

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netflix

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 [...]

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debt

Federal Debt Problem Continues to Worsen: That’s Bad News for the Future

You would think that with a national debt over $21 trillion and continuing to climb every day that the federal government would get serious about cutting back on spending sometime, but oh no. More and more we hear from Washington that the government isn’t spending enough. We need to spend more to to defend against the threat from North Korea, to support farmers and manufacturers, or to build yet more infrastructure rather than repair what already exists. That’s why [...]

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Latest Jobs Report Not Exactly Awe-Inspiring

The July jobs report that was just published is another sign of the underwhelming continued growth of the economy. While economists predicted a gain of 193,000 jobs, the actual number was only 157,000, a pretty large miss. And while much of that was chalked up to a one-time hit from the closure of bankrupt toy retailer Toys R Us, that should have been anticipated and built in to mainstream projections. One aspect of the jobs report to look at is [...]

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investing

The 3 Key Things to Keep in Mind When Investing

If you want to live a comfortable retirement, pay for your children’s college tuition, buy a vacation house, or enjoy any of the other creature comforts that many people today have come to expect, you have to invest your money. Chances are that you’re not going to work till you die, so you can’t expect to fund your lifestyle solely through your work income. That’s why it’s more important than ever to pick the right investments to grow your [...]

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trump

Continued Tariff Wars Will Harm the Economy and Investors

The continued tariff war between the United States and the rest of the world shows no signs of abating anytime soon. Coca-Cola has announced price increases on its products due to US tariffs on aluminum imports raising the price of aluminum cans. Harley Davidson and BMW have both announced shifts of production from the US to factories in Asia to get around retaliatory tariffs on US-made products. And American farmers are received $12 billion in bailouts to help them [...]

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foreclosure

Do Continuing Woes in the Housing Market Mean a Correction Is Coming?

Many investors remember the panic in financial markets that occurred in late 2008 as it appeared that financial markets were about to collapse. And they remember the role that mortgage-backed securities played in those fears, as securities that had been AAA-rated were found to be anything but. However, the collapse of the housing market didn’t take everyone by surprise, as signs of a bubble and subsequent weakness had been visible for years. Now that the US housing market is [...]

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gold and silver

Are Gold and Stocks Really Negatively Correlated?

In investment circles it’s common to hear that stocks and gold are negatively correlated. That is to say, gold’s price increases when stock prices decrease, and vice versa. That’s why you’ll often hear the recommendation to sell stocks and invest in gold when stocks are doing poorly, and to sell gold and buy stocks when stock markets are doing well. But is it really true that the two are negatively correlated? And if so, is it really a good [...]

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trump monetary policy

President Trump’s Comments on Interest Rates Don’t Bode Well for the Economy

President Trump recently took on the Federal Reserve’s conduct of monetary policy, although not in a good way. Rather than criticizing the Fed for keeping interest rates too low for too long, he criticized the Fed for raising interest rates, complaining that in so doing the Fed has taken away America’s competitive edge against China and is erasing all the gains the economy has made due to the Trump administration’s economic policies. It’s no secret that the Fed throughout history [...]

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