Posts Tagged ‘economy’
We Had a Strong Q1 2019; What’s the Outlook for the Rest of the Year?
We Had a Strong Q1 2019; What’s the Outlook for the Rest of the Year? The first quarter of 2019 proved to be a strong one. The S&P 500 posted a 13.1% gain (the highest quarterly gain since 2009), the Dow Jones Industrial Average rose by 11.15% and the Nasdaq increased by 16.5%. Bond…
Read MoreWhere U.S. Economics Stand Globally
Where U.S. Economics Stand Globally From the beginning, President Donald Trump’s economic policies have intended to put “America first.” Since the ultimate goal of such policies is to strengthen America’s economic growth, solve for domestic issues and make the nation more secure, it’s worth a review of how well policy changes are working toward those…
Read MoreChina’s Growing Economy
China’s Growing Economy General Motors recently announced the pending closure of three U.S. assembly plants and the discontinuation of six cars made at those plants. While large sedans are no longer big sellers in the United States, they remain popular in China, and GM will continue to manufacture them there.1 China is GM’s largest market;…
Read MoreTrade Agreement Updates
Trade Agreement Updates In the new U.S.-Mexico-Canada Agreement (USMCA), which would replace the North American Free Trade Agreement (NAFTA), among gains for the United States is a new provision negotiated with Mexico related to auto products. Under the new terms, to qualify for tariff-free sales, 75 percent of automobile materials must be produced in the…
Read MoreInterest Rate Watch
Interest Rate Watch In late September, the Federal Reserve raised its key short-term interest rate to 2.25 percent from 2.0 percent, in its third increase of the year.1 The good news is that higher rates offer the potential for higher returns on CDs, bank savings and other fixed-rated accounts that have been languishing…
Read MoreEconomic Indicators
Economic Indicators Newton’s laws of motion and gravity are often applied to economics and the stock market. What goes up, must come down. While this generally explains a natural path of the economic cycle, the key question for most investors is: When will it come down? While no one can predict market directions with exact accuracy, economists…
Read MoreAre We in a Corporate Debt Bubble?
Are We in a Corporate Debt Bubble? 2018 marks the 10th anniversary of the Great Recession of 2008. Despite a painfully slow recovery, U.S. economic growth has been sustainable. The stock and bond markets continue to perform well, unemployment is low and the economy is generally considered healthy and booming. And yet, whenever things are…
Read MoreTrade Wars: More Context
Trade Wars: More Context In particular, automobiles seem to be in the crosshairs of President Trump’s hard line on trade with the rest of the world. Here are a few reasons why:1 U.S. auto production represents about 2.7 percent of GDP. There are more jobs in motor-vehicle assembly than in computers and electronics, chemicals,…
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