GDP Expands at Highest Rate in Two Years

by Marilou Long on November 29, 2016

in Economic Indicators

U.S. GDP expanded at a 3.2% rate in the third quarter, the highest rate in two years.  It was primarily driven by consumer spending.  From the linked WSJ article:

Tuesday’s report also showed that gross domestic product, a broad measure of the goods and services produced across the economy, expanded at an inflation- and seasonally adjusted annual rate of 3.2% in the third quarter, the strongest growth in two years.

That was up from last month’s estimate that output rose at a 2.9% pace in the third quarter and beat economists’ expectations for a revision up to 3% growth. The latest reading was boosted by stronger consumer spending, though business investment came in weaker than earlier estimated.

“The U.S. economy is in good shape in the second half of 2016,” PNC Financial Services Group Deputy Chief Economist Gus Faucher said in a note to clients. “After some softness in late 2015 and early 2016, tied to an inventory correction and a downturn in energy production, growth has picked back up.”

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Dow Tops 19000 for the First Time

by Marilou Long on November 22, 2016 in Commodities

The Dow, S&P 500, and Nasdaq all hit record highs yesterday.  From the linked WSJ article: The Dow Jones Industrial Average breached 19000 for the first time early Tuesday, a day after major U.S. stock indexes hit a series of records. The blue-chip index was recently up 47 points, or 0.3%, at 19004. The S&P […]

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Stanley Druckenmiller on Growth and Regulation

by Laura Ehrenberg-Chesler on November 10, 2016 in equity market

This morning famous long time investor Stanley Druckenmiller told CNBC why he is optimistic about economic growth for the first time in 4 years. × Stan Druckenmiller: I’m optimistic about the future Share this video http://video.cnbc.com/gallery/?video=3000566971

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Happy Days are Here Again – courtesy of Ed Yardeni

by Marilou Long on November 8, 2016 in equity market

The Morning Brief from Yardeni Research has some interesting insight regarding today’s election. “Happy Days Are Here Again” is a song copyrighted in 1929 by Milton Ager (music) and Jack Yellen (lyrics). I wonder if the lyricist is related to Fed Chair Janet Yellen? The song was featured in the 1930 film “Chasing Rainbows.” The lyrics are […]

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Mohamed El-Erian on the Election

by Marilou Long on October 26, 2016 in Investment Strategies

I tend to agree with Mr. El-Erian’s thoughts on the market’s reaction to the election in this article from Business Insider.  From the linked article: Garber: How do you think the election will impact markets? El-Erian: The greatest impact would come from the materialization, as unlikely as this currently is, of one of the two tails […]

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The Battle for Mosul

by Marilou Long on October 18, 2016 in Geopolitical

Geopolitical Futures published an interesting article today titled “The Harsh Reality Behind the Battle for Mosul”. From the conclusion of the linked article: The U.S. thought it was building a liberal democracy in Iraq. It helped Iraq draft a constitution, and Iraq even has a functioning Supreme Court. But the U.S. forgot that liberal democracy is not […]

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Haiti and Israel

by Laura Ehrenberg-Chesler on October 11, 2016 in Israel

At this special time of year for the Jewish people, I thought it would be appropriate to highlight how the Jewish State is helping, and has been helping, in Haiti for the past six years. Happy New Year to all of our Jewish friends and clients. Israelis didn’t have far to go in the rush […]

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A Timely Reminder about Politics

by Marilou Long on October 4, 2016 in Investment Strategies
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Tribute to Shimon Peres

by Laura Ehrenberg-Chesler on September 29, 2016 in Israel

This morning George Friedman wrote a beautiful tribute to Shimon Peres. I thought it was worth reposting a portion from his concluding paragraph. “Peres saw the destruction of European Jewry happen before his eyes, and he set out to serve his new nation with all of his heart and all of his soul and all […]

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The Incredible Public Debt Burden

by Laura Ehrenberg-Chesler on September 27, 2016 in Debt

The excerpt below is from Ed Yardeni today. It really is an incredible public debt burden, and I am not sure how we pay it back. Particularly with such low, slow domestic growth. “Golden years. We probably need to increase the retirement age to 72, but that won’t fly with the AARP lobby. Neither HRC […]

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