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Tag Archives: bonds

Harvey & Irma: Pushing the Economy to the Tipping Point

Hurricane Harvey devastated the Houston area (and economy), and, while Irma could have been much worse, it still left significant destruction in Florida and the southeast.  What we can say for sure is that the monetary impact of Harvey alone would have been the largest natural disaster in U.S. history, and now we must add on the monetary impact of Irma.  And the hurricane season still has another month and …Read More

Economic Growth: Its Importance and the Potential Impact of its Demise

Conceptually, economic growth is a function of two factors: the growth of jobs, and the productivity of those employed.  In a world where the labor force of industrialized nations is stagnating, or, worse, shrinking, one might reasonably ask: “Why is economic growth, as measured by the increase in real GDP, so important to the economy?”  A good argument can be made that real GDP per capita would be a better …Read More

Post-election market drama

Last Tuesday evening, while dining with family and business associates, I had one eye on the elections and the other on the Dow Jones Futures Index, a proxy for the Dow Jones Industrials (DJIA) in the non-trading hours. At one point, the futures were down 900 points, and I was drooling over the prospect of one of those quite rare buying opportunities produced by extreme market fear, irrationality and emotional distress. …Read More

June’s economic backdrop

June’s economic backdrop From the emerging data, it would appear that my analysis of the economy’s underlying strength, as published in this column, was spot on. The First Quarter •I remarked several times over the past few months that the seasonal adjustment process (SA) used by the Bureau of Economic Analysis is often unreliable and sometimes misleading. Now, after what appears to be the second year in a row of …Read More

What is up with the Yield Curve?

Originally published on Tahoe Daily Tribune’s website http://www.tahoedailytribune.com/news/opinion/15174122-113/tahoe-truckee-market-beat-what-is-up-with-the-yield-curve The Yield Curve walks into a bar. The bartender says, “Hey, you’re really getting into shape!” The Yield Curve replies, “Yep. I believe the Expectations Hypothesis is working on my slope!” The bartender inquires, “Are you sure?” To which the yield curve responds, “I’m positive.” I can’t take credit for that joke; it was written by BYU economics professor Richard W. Evans. …Read More

Learning the basics of bonds

Originally published on Sierra Sun Tahoe Tribune http://www.tahoedailytribune.com/news/opinion/13034234-113/bonds-bond-yield-rate Fixed income investors today have had a difficult time finding yield with the record low interest rates we’ve seen. Bond investors can choose between using mutual funds or can purchase the individual bonds themselves, depending on what is more suitable for their own unique situation. If you are shopping for bonds, there is some basic terminology that you’ll need to understand to …Read More