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Military Spending Boosts Third Quarter GDP
The advance estimate for third quarter GDP growth came in at a better-than-expected 2.0%. This was up from 1.3% growth in the second quarter and, on the surface, it looks like good news. With the election just days away, the … Read More
Obama Wins, Stock Futures Turn Red
The elections are over. President Obama gets another four years in the White House. This means Ben Bernanke remains at the Fed. Tim Geithner will remain at Treasury if Obama insists, but Geithner has made clear his preference to step … Read More
Fiscal Cliff Fears Founder the Market
The post-election sell-off is becoming a serious concern. The S&P 500 is down 3.6% in just the two days following the election. This is a clear indication that investors are not happy with the election results. President Obama remains in … Read More
Immigration, One Reason Why Romney Lost
The election is over and the analysts are trying to explain the results. Of course, there are many reasons why Barack Obama won and Mitt Romney lost. Yet one thing is clear. The Democrats did an excellent job of defining the … Read More
Stop Posturing and Cut a Deal Now!
It is difficult to point this out without sounding partisan, but U.S. stocks have been sinking ever since Election Day. The selling has been across the board. The Dow Jones Industrial Average and the S&P 500 Index are both down … Read More
The Rush for Special Dividends
With fiscal cliff negotiations still going on, one thing is certain. Tax rates on dividends and capital gains will be going up. The only question is by how much. The highest tax rate on qualified dividends is currently 15%, but … Read More
Political Dysfunction Remains Primary Risk
With 2012 drawing to a close, it is really difficult to believe that American politicians have yet to resolve the fiscal cliff. Just a few years ago my good friend Ian Bremmer of the Eurasia Group identified political risk as … Read More
More Good News About Housing
The economy continues to struggle in many respects, but housing has been one bright spot in recent months. The S&P/Case-Shiller numbers for October were announced today and they provided more evidence that demand for existing homes is strengthening. The 20-City … Read More
Not Perfect But Better Than Nothing
Well folks, a deal to avert the fiscal cliff has been struck and, at least for today, investors are celebrating. Not surprisingly, the deal is flawed, but it is better than no deal at all. And the resolution, if it … Read More
A Disconnect Between Housing and Jobs
There is plenty of evidence as of late that the housing market is improving. Sales and prices for both new and existing homes are on the rise. Since housing starts remain below trend and since household formation is growing, one … Read More
Investors Flock Back to Stocks
Some professionals believe that retail investors are an excellent contrary indicator. They claim it’s a good time to buy when the man on the street throws in the towel and vows to stay away from stocks; and it’s a good … Read More
The Can Gets Kicked Again
Every investor knows that the U.S. has some serious economic problems. The government has way too much debt, the budget deficit is huge, economic growth is anemic, and it has been 30 years since the employment participation rate was as … Read More
