Wednesday, November 14, 2018
The midterm elections left the U.S. with the House of Representatives controlled by the Democrats, Republicans tightened their hold on the Senate, and President Trump has the bully pulpit and veto power. That is a formula for real bi-partisan compromise or a government that will have trouble just passing a budget. I will be a […]
Can the Fed cause a market crash? In 2017 Fed Chair Janet Yellen reassured us: “Would I say there will never, ever be another financial crisis? …. That would be going too far but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will […]
“Oh my gosh”, my wife Jo exclaimed. “He’s walking right toward us!” He smiled, extended his hand and said, “Hi, I’m Ron Paul.” I smiled, shook his hand, and introduced myself and my wife. I was the oddball when I wrote for Casey Research. I was surrounded by legendary newsletter pundits and heavy-duty researchers. I […]
Last week the Federal Reserve Board increased its Fed Funds Target rate for the second time this year, to 1.75%. The Fed Funds rate controls yields on the short end of the yield curve. Rate increases typically push fear-driven investors to sell the income stock categories like REITs and Utilities. Informed investors use these sell-offs […]
Next Tuesday and Wednesday, the Federal Reserve’s Open Market Committee will meet to discuss U.S. interest rates. Alas, if you’re looking for drama and anticipation, try the current Stanley Cup Final instead. The federal funds futures market has priced in a 90% chance of a rate hike. It would follow a 0.25% rate bump to […]
Typically, when the Fed raises interest rates, there is a knee-jerk reaction by investors to sell dividend paying income stocks. As with almost every change in the financial world, there are companies that will be hurt by higher rates and others that will see a benefit. Investors who understand the effects of higher rates on […]
Last week the Federal Reserve Board announced another interest rate hike. The Fed increased its target short term interest rate by 0.25%. This is the first of three or four projected quarter-percent increases this year on top of two rate increases in 2017. The financial news outlets will be wrong in stating all high yield […]
I’m frequently asked, “Should I count on social security when doing retirement planning?” The best approach is to discuss what my wife Jo and I have experienced. I compared our 2018 benefit statement with 2015. Our Cost of Living Increase (COLA) was 2.3% – (1.15% annually). Our net payments dropped approximately 1.75% – we are […]
Last week the Federal Reserve Board announced another interest rate hike. The Fed increased its target short term interest rate by 0.25% to a range of 1.25% to 1.5%. The new Fed Funds rate is up from 0.50% a year ago, after three quarter point increases this year. While many investor fears concerning higher interest […]
Thanksgiving is in two weeks, if you can believe it, and that means 2017’s trading year is coming to a close. By December 15th or so, volume will dry up dramatically and many investors will close shop until next year. But does that mean stocks are done moving for the year? While September and October […]
