Where are the Jobs?

Where are the Jobs?

Friday the Dow Jones opened down, falling as much as 258 points, to only then completely reverse direction and ended the day up 200 points for a more than 450-point swing!  This was the biggest one-day percentage reversal in about four years. What drove the crazy move? This wild move was based on the very disappointing […]

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Neil Cavuto: Fed Policy is the Problem

Neil Cavuto: Fed Policy is the Problem

This morning I spoke with Neil Cavuto on Fox Business about the Fed’s decision to not raise rates earlier this week; my view, Fed policy is the problem! An economy grows when good ideas are able to get funding, find talented people to work on them and are able to operate in an environment that is […]

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ZIRP and QE are killing the economy

ZIRP and QE are killing the economy

Shocker! The Fed didn’t raise rates today. I’ve been predicting the no-change decision for months! It was pretty obvious, but that’s because I can see that ZIRP and QE are killing the economy. The labor market is still relatively weak, regardless of what the seriously misleading unemployment rate statistic tries to tell us. Job openings […]

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China and Emerging Markets – A tale of QE

China and Emerging Markets – A tale of QE

This week I sat down with Erin Ade on RT’s Boom Bust to discuss what is happening in China and emerging markets and how it may affect U.S. investors as well as our domestic economy. When the Federal Reserve began its Quantitative Easing Programs, many feared that it woul16d lead to high levels of inflation. Today, after three […]

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To Raise or Not to Raise

To Raise or Not to Raise

To Raise or Note to Raise – The big question that has the attention of markets all over the world is, “Will the U.S. Federal Reserve raise rates in September?” We’ve discussed in both our June newsletter and July newsletter that we believe it is unlikely that the Fed will raise rates and continue to […]

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Strong Economy, Really?

Strong Economy, Really?

Last week I pointed out that the data coming in wasn’t exactly painting a picture of an increasingly robust economy that would warrant the Fed tightening rates. Last Thursday we learned that initial jobless claims rose again the last week of February to 320,000, significantly above expectations of 295,000. We also learned that US Factory orders fell […]

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Impact of share repurchases

Impact of share repurchases

I’ve discussed before on this blog the trend for companies to issue debt then use the proceeds to buy back their own shares.  Today I’m going to look at the impact of share repurchases on equity markets.  The chart at right shows the increase in share repurchases. When the interest rate paid on the bonds […]

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December Market Update

December Market Update

Last week was a tough one in the markets as taper fears, once again, in that tired refrain, pushed the indices down. The markets are still in decidedly heady territory for the year, up 27% as of Friday’s close. Given the holiday season, we thought we’d try to express our concerns a little more festively […]

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100 Years of the Federal Reserve

100 Years of the Federal Reserve

There was a time when no one, outside perhaps the most esoteric economic geek circles, could name the current Chairman of the Federal Reserve. Those days are now long gone as the Fed has taken a much more active role in the economy and the various Fed Presidents and Chairman have evolved into media cult […]

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Tapering Taunts Tells of Tenuous Times

Tapering Taunts Tells of Tenuous Times

Starting in late May the Federal Reserve diligently prepared the markets for the dreaded tapering of quantitative easing, based on their assessment of an improving economy. By the time the September meeting of the FOMC (Federal Open Market Committee) occurred, the markets had been thoroughly primed and conventional wisdom considered a $10 – $15 billion […]

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