One-of-a-Kind Hospital for Military Dogs is in San Antonio

by Marilou Moursund on June 29, 2018 in Military

I loved this article in the San Antonio Express-News today.  The Lt. Colonel Daniel E. Holland Memorial Military Working Dog Hospital is located on Joint Base San Antonio-Lackland.  Military dogs from all over the world are flown here to be treated.  From the linked article: Robin isn’t yet a military working dog, but he was […]

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Junk Bond Spreads are a Positive Sign for the Economy

by Marilou Moursund on June 26, 2018 in Bonds

Just like stocks, junk bonds perform better when the economy is strong.  This is because the companies are earning enough money to cover their interest payments.  When the economy weakens, the spread versus the comparable Treasury bond widens as investors move to less risky assets.  Junk bonds are performing better than investment grade debt this […]

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Tune Out the Noise of a Trade War

by Laura Ehrenberg-Chesler on June 20, 2018 in Earnings

From our favorite economist Ed Yardeni: “Trump’s approach risks escalating the trade skirmishes into an all-out trade war, which would depress global economic activity. Now let’s try to tune out the noise of war and find some peace and quiet: (1) Forward earnings. Notwithstanding all of the above, Joe and I continue to focus on […]

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It’s Fed Day Today

by Marilou Moursund on June 13, 2018 in Economic Indicators

It is widely expected that the Federal Reserve will raise rates by a quarter of a percent today.  From the linked Wall Street Journal article: It’s possible that continued strong hiring in the U.S., which pushed down the unemployment rate to 3.8% in May, leads at least one official to move up from three to four […]

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A Primer on the Political Turmoil in Italy

by Marilou Moursund on May 30, 2018 in currencies

It wouldn’t be summer without political turmoil in Europe.  The Dow fell 400 points yesterday on concerns about Italian debt after the Italian president blocked a coalition government from forming.  The New York Times has a good article explaining what is going on in Italy.  From the linked article: The two parties that won the […]

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Recession – Not in the Foreseeable Future

by Laura Ehrenberg-Chesler on May 23, 2018 in Earnings

From Economist Ed Yardeni today: “Since we don’t see a recession in the foreseeable future, we continue to focus on the forward P/E, which isn’t alarmingly high, in our opinion. The further out that a recession is perceived as likely to happen, the more sustainable are above-average P/Es. That’s because long expansions give investors the […]

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Rising Rates Create Tighter Financial Conditions

by Laura Ehrenberg-Chesler on May 17, 2018 in Fed policy

From the WSJ today: “The yield on the 10-year Treasury note climbed to 3.082% on Tuesday, breaking above a 2014 peak to settle at its highest level since 2011. The rise in that benchmark stands to lift borrowing costs for everyone from consumers to corporations. Meanwhile, the WSJ Dollar Index, a measure of the U.S. […]

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Share Buybacks Steady Market

by Laura Ehrenberg-Chesler on May 10, 2018 in Earnings

The new tax code overhaul, signed into law in late 2017, has encouraged companies to repatriate over $2 trillion in overseas cash. Some of that cash has gone into research and development as well as capital equipment purchases. But, a lot of that cash has gone into share repurchases. These buybacks have helped to steady […]

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Public Pension Plans Present Problems

by Marilou Moursund on May 8, 2018 in politics

As we see over and over, governments don’t have to follow the same rules as the private sector.  Public pension plans are very underfunded according to this Wall Street Journal article titled “Pension Funds Still Making Promises They Probably Can’t Keep”.  From the linked article: But government officials seeking to make their investment targets more […]

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The IMF’s World Economic Outlook April 2018

by Marilou Moursund on April 19, 2018 in Economic Indicators

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 […]

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