Monetary policy in the U.S. is now a drag on real economic growth. Big business now concentrates more on financial manipulation than on production and sales. The Fed’s policy of financial repression has negative consequences, not only for investors needing fixed income, but on the economy’s productivity. In addition, contradictory policies, government lawsuits, and regulatory strangulation have had a large negative impact on growth. Yet, despite all of this, the …Read More
Second quarter earnings preview
Corporate earnings are the main driver of stock prices. Alcoa Aluminum kicked off the second quarter earnings season with a bang by reporting earnings of $0.18 per share. Revenue was $5.84 billion. The forecast was for earnings of $0.12 with revenue of $5.66 billion, so they beat their estimates handily. That brings up a good question and one that I’ve wondered about from time to time. In the financial press, …Read More
Second quarter market review
The stock market is doing well this year, with both the S&P 500 and the Dow Jones Industrial average at record levels. The Dow is pushing the 17,000 mark, and the S&P 500 is approaching 2,000. The NASDAQ has hit its highest mark since the year 2000 when it soared above 5000. Year to date, the S&P 500 is up about 7.14 percent, the Dow is up about 2.68 percent, …Read More
One way to grow the economy
The revised GDP numbers for the first quarter came out last week and were a tad disappointing. Gross Domestic Product (GDP) receded at a -2.9 percent annual rate. That was the sharpest drop in five years and has been blamed on the record cold winter in many parts of the country. Unfortunately, the Tahoe region didn’t partake in the harsh winter that the East Coast had. We were warm and …Read More
