The International Monetary Fund (IMF) published their economic outlook today, and the main conclusion is that the global upswing that began in mid-2016 has become broader and stronger.  From the linked report:

World growth strengthened in 2017 to 3.8 percent, with a notable rebound in global trade. It was driven by an investment recovery in advanced economies, continued strong growth in emerging Asia, a notable upswing in emerging Europe, and signs of recovery in several commodity exporters. Global growth is expected to tick up to 3.9 percent this year and next, supported by strong momentum, favorable market sentiment, accommodative financial conditions, and the domestic and international repercussions of expansionary fiscal policy in the United States. The partial recovery in commodity prices should allow conditions in commodity exporters to gradually improve.


Ed Yardeni on Tariffs and Blockchain

by Marilou Moursund on March 15, 2018 in currencies

We have all heard about the wild ascent and subsequent fall in the price of Bitcoin, and shortening cryp tocurrency to crypto in your conversation is a sure fire way to sound cool.  However, the underlying technology driving Bitcoin, called blockchain, has many theoretical uses.  From Yardeni Research’s Morning Briefing today: 1) Blockchain basics. We’ve […]

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The Anniversary of the 2009 Market Low

by Laura Ehrenberg-Chesler on March 6, 2018 in capitalism

March 6, 2009 was the market low during the era if the financial crisis. Intra-day, the S&P 500 dipped to 666. Some of the headlines from that period were as follows” “Market’s 7-day rout leaves U.S. reeling” “Worst Week Ever for Stocks” “Mounting Fears Shake World Markets” “FORCLOSURES” “The Week That Changed American Capitalism” We […]

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Warren Buffett Invests Like a Girl

by Marilou Moursund on March 1, 2018 in Investment Strategies

In this Bloomberg article titled “The Next Warren Buffett Will Be A Woman“, the author lays out research that shows how women invest and compares their personality traits to those of Warren Buffett.  The author contends that women are more patient, not prone to panic, and have less of a tendency to be overconfident.  These […]

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Digitization and Good Policies can drive Productivity Gains

by Laura Ehrenberg-Chesler on February 26, 2018 in Economic Indicators

From the “Wall Street Journal” today: “Digitization isn’t the only factor economies could embrace to unlock productivity growth. The report calls for policies to encourage education, businesses investment and the purchasing power of low-income consumers. Rising income inequality since the mid-2000s has been a constant, if moderate, drag on demand, according to the report. If […]

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Bonds Sell Off after Release of Fed Minutes

by Marilou Moursund on February 21, 2018 in Bonds

The yield on the 10 year Treasury jumped from 2.88% this morning to 2.96% this afternoon after the Federal Reserve released its minutes from the January meeting.  Fed officials increased their outlook for both growth and inflation in January.  From the linked Wall Street Journal article: Fed officials late last month believed the economy was […]

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Falcon Heavy Rocket Flies Like an Eagle – courtesy of Stratfor

by Marilou Moursund on February 7, 2018 in Space exploration

The SpaceX launch of its Falcon Heavy rocket yesterday is very exciting news for the future of space exploration.  From the linked Stratfor article: SpaceX’s process of disrupting the space industry remains long and prosperous. The private company has successfully launched its Falcon Heavy rocket, sending its “payload” spacecraft, which in this case carries founder Elon […]

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Earnings led Melt Up

by Laura Ehrenberg-Chesler on January 29, 2018 in Earnings

As Ed Yardeni stated this morning in his daily research piece, most market “melt-ups” are led by a P/E expansion. The current “Melt Up” is being led by an earnings expansion. From Ed Yardeni: “The short answer to the meltup question is that the stock market is in a meltup, in our opinion; but as […]

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Economy will benefit from Tax Reform

by Laura Ehrenberg-Chesler on January 26, 2018 in Employment

Many companies are now announcing various ways the new tax reform bill will stimulate capital spending and therefore the economy. This is helping to lift industry and their employees beyond the immediate bonuses. From well known companies like Apple and Kimberly-Clark to lesser known companies like Amicus Therapeutics, there is a rush to bring money […]

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Truck Shortage is Another Indicator of the Strong Economy

by Marilou Moursund on January 24, 2018 in Economic Indicators

The Wall Street Journal had an interesting article today about the shortage of trucks in the U.S.  From the linked article: Several factors have converged to overwhelm the trucking market. Freight volumes in December hit near-record levels for that time of year, on the back of a strengthening economy. Retailers are replenishing stocks after one […]

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