There’s no place like home
Most of us have been spending an extraordinary amount of time at home, and if we are lucky – as I am – we have been healthy, employed, and surrounded by loved ones. There really is no place like home, which brings us to the…
Don’t fight the Fed. And, maybe the Federal Government too
Among the better-known Wall Street maxims is “Don’t fight the Fed,” which speaks to the idea that monetary policy and the trend in interest rates determines the direction of the stock market. Or, more specifically, when the Fed is lowering, or keeping interest rates low,…
Two bits of good news. And, what are two bits, anyway?
The economic headlines of late have been driven by – and understandably so – BIG pieces of news, both bad and good. There was Q1 GDP contracting by 5% and an April unemployment rate of 14.7%. Conversely, there was the unprecedented policy response to the…
What history will COVID-19 write?
The COVID-19 pandemic has made history in more ways than one, including catalyzing an economic downturn that cost the US more than 20 million jobs and a policy response that saw the Federal Government pass the $2.1 trillion CARES Act, the largest ever US economic…
The market as a leading indicator…for the market
We frequently write about the stock market as a leading indicator of the real economy. The idea being the market will anticipate the economic environment to come, rallying in the face of awful economic news and selling off in the face of constructive economic news….
Focused expertise
There have been many restrictions placed on the normal rhythms of life in response to the COVID-19 pandemic. The interactions we typically take for granted such as going to restaurants, spending time with friends, working out at the gym, and traveling on vacation have all…
How the Federal Reserve is like Spike from Happy Days
As a child of the 70s, I have come to embrace a few, eternal truths: disco should have never died; big collars were a good idea, and the Fonz was the coolest guy who ever lived. Speaking of the Fonz, I am reminded of a…
It’s always darkest before the dawn
It is one thing to understand we are living through an unprecedented, pandemic driven economic downturn, and all together another to learn the US unemployment rate is 14.7% and that 20.5 million of our fellow Americans lost their jobs in April. The numbers are shocking,…
Putting politics aside
We live in red or blue states; we tune into liberal or conservative media outlets; our President is either Making America Great Again or an existential threat to our Republic; on it goes. Yet, consider how policymakers—including House Speaker Pelosi, Senate Majority Leader McConnell, and…
Creative destruction
Economist Joseph Schumpeter coined the phrase “creative destruction” to describe the way innovation in the manufacturing process increases productivity while destroying the old way of doing things as a new efficient way is developed. This idea has been expanded to many other contexts as we…