Investment Insights Podcast – August 21, 2015

miller_podcast_graphicBill Miller, Chief Investment Officer

On this week’s podcast, we focus on two important areas of the economy as noted by Economist Don Rissmiller (recorded August 19, 2015):

 

  • Employment:
    • Labor Force Participation Rate (LFPR) often used as a technicality with good or bad unemployment rates
    • However, there’s nothing actually nefarious about the number and (because it is falling) is more a function of baby boomers aging
    • Despite falling, the LFPR does not diminish the success we’re seeing in getting people back to work
  • Interest Rates
    • Fed has interest rates at 0%, so may see a gradual increase up to somewhere around 2%
    • If interest rates do in fact rise, it would behoove the Fed to have them match the inflation rate as to not damage the economy

Overall, the economy feels mid-cycle, people are going back to work, and appear to be in a position to handle slightly higher interest rates.

Click here to listen to the audio recording

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change.

 

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