Archive | July, 2017

The Fed “Unwind” May be a Tailspin

31 Jul

Leading up to 2007 – before the Federal Reserve’s Quantitative Easing program and Zero Interest Rate Policy, the Fed held about $800 billion in its portfolio, or “balance sheet.” Today, the Fed has about $4.5 trillion on the balance sheet, much of which is government debt and mortgage-backed securities purchased years ago to save us [...]

When Low Unemployment Can Be Bad News

24 Jul

We’re at or near full employment – or so the statistics say. Full employment generally means almost everyone who wants a job can get one, and the primary constraint on growth is the amount of labor available. Plentiful, abundant jobs with growing companies? I don’t think that is most folks’ reality. More likely, if they’re [...]

Indexing Error?

17 Jul

Picking stocks is an art form that is dying a passive death. I say “passive” because the influx of passive investing into the market has taken a lot of business from investment advisors. But investments that track the market, or segments of it, are a house of cards in themselves. Sure, the upside is promising. [...]

It Doesn’t Seem to Matter

10 Jul

We’re at market highs, yet like others, I’m reminded of Queen’s big hit, “Bohemian Rhapsody,” because it’s as if nothing really matters. I say that because several events of historical magnitude have failed to make any significant impact on the markets. One is the Trump presidency and the obvious lack of momentum for its agenda. [...]