Archive | December, 2016

Odd Happenings

26 Dec

Since Donald Trump was elected, a few noteworthy things have happened. For instance, the correlation between stocks and bonds is near zero. It’s almost always strongly positive or negative. When the correlation is strong, investors lose diversification. When stocks and bonds are negatively correlated (as they are now), bond yields tend to shoot up. This [...]

Taxes, Regulation and Economic Performance

19 Dec

If people were to pick which issue was most important during the presidential campaign cycle, I bet most would say the economy. After all,┬áthe economy is the backbone of American life as we know it. So in that sense, it’s interesting to view modern presidents in terms of economic performance (i.e., GDP growth). John F. [...]

The Government Gravy Train

12 Dec

An October survey of government workers revealed that 27 percent of them would consider quitting if Donald Trump became president, with another 9 percent unsure if they’d quit. Trump said he’d make government smaller and he might just have to show up on day one for it to happen! Of course, such a scenario will [...]

What about the Deficit?

5 Dec

The election is over and the candidates covered a multitude of topics, both serious and nonsensical. But one thing they didn’t discuss was our current deficit. In 2016, we spent nearly $4 trillion. The bulk of it falls into five categories. First is health care, which accounts for $1.1 trillion. Of that, Medicare, Medicaid, and [...]