Slower Growth, Inflation, the Fed, and End of Cycle Indicators
The U.S. economy itself appears to be doing well, but we see many end of cycle signs, including less than 4% unemployment, rising interest rates, emerging consumer inflation, a strained housing market, slowing growth worldwide, and huge instability now developing in the emerging market space. Economy Still Healthy The 0.8% rise in retail spending in […]
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 […]
Stock prices down – should you worry?
Originally published on Reno Gazette’s website http://www.rgj.com/story/money/business/2015/01/07/robert-barone-stock-prices-worry/21424791/ Intellectually, we all know that the equity markets can be volatile. It is a question of whether or not we can control our emotions, especially during market sell-offs. As of last Tuesday, the S&P had fallen for five straight sessions, something we haven’t seen for a year. Some […]
Should investors worry QE3 has ended?
Originally published on RGJ.com’s website http://www.rgj.com/story/money/business/2014/11/16/robert-barone-investors-worry-qe-ended/19080941/ As October ended, the Fed announced an end to its controversial money printing policy, known as QE3 (the third round of quantitative easing). In QE3, the Fed purchased large quantities of U.S government securities. When the Fed purchases bonds, it creates new money in the form of bank reserves. […]
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, […]