Stock investors are beginning to brace for a rate rise. The combination of a good jobs report, bond market volatility, and the specter of rate increases contributes to stocks and bonds coming under pressure. What’s good for the economy isn’t necessarily good for stock and bond investors. This is what a good jobs report looks
Nashville’s housing market is booming. Rents are rising dramatically. We are hearing stories that give us pause to consider the sustainability of the boom. Several articles have caught our attention. Nashville’s housing market hits high notes thanks to young buyers. The Financial Times featured Nashville’s booming housing market a few weeks ago. [Tiered Registration Required]
This week we examine some worrisome characteristics of the U.S. market. According to Liz An Sonders of Charles Schwab, global monetary conditions remain equity market friendly, but pending U.S. rate hikes may change perception about market valuation. Gavyn Davis, columnist for the Financial Times, notes increasing grounds to worry about the sustainability of the market’s
News from Jackson Hole, Wyoming leads off this week, where central bankers from across the globe met last week. In addition, the analysts from Charles Schwab provide a market perspective, and an overlooked vehicle for saving for retirement is examined. No rate change until U.S. has 2% inflation and strong job market. Each year the
U.S. economy returns to growth after winter downturn. The U.S. economy grew at a seasonally adjusted 4% in the second quarter, according to numbers released last week from the Commerce Department, topping most economists’ forecasts. This was a nice rebound from the first quarter’s steep contraction of 2.1%--the worst single quarter downturn in five years.
Global growth appears to be gathering momentum after an unusual cold snap in the U.S. The employment picture has improved with four months of sustained job growth. And, inflation is firmly under control, with the implication that stock and bond markets are fairly valued in a low interest rate environment. Outlook for Global Growth. The
Mixed economic signals and investor uncertainty are two interrelated topics we address this week. We explore bond and stock markets that are providing divergent messages. Then, we address a strategy—really a different perspective on what we already are doing—to address uncertainty in conditions like these. Fears over ‘lowflation’ serve up a bond market surprise. Yields
During the streak of bad weather this winter some concern was expressed that the economy would lose steam. Despite the bad weather, the economy managed to produce a decent number of jobs in February. We address Friday’s jobs report and what it means. We’ve had a number of questions posed recently about the size of
One of the recurring themes at conferences in the last year has been the shale gas revolution, and in particular, its larger global impact. The revolution in oil and gas –known as “fracking”—has led the International Energy Agency to estimate the U.S. will surpass Russia and Saudi Arabia as the world’s top oil producer by
Janet Yellen takes the helm of the Federal Reserve February 1. She will be the first female head of the Central Bank. Just what kind of leader will she be? That’s the question we ask this week. She is a first rate academic uniquely qualified to address the current labor market malaise. She cares more