Tag "gdp growth"

2018 Tax Reform Offers Short-Term Gain, Long-Term Pain

The new tax plan, in my opinion, is not overly significant. From an economic standpoint, since other nations have lower corporate tax rates, there is a competitive logic to lowering our corporate tax rate, which this bill does. The problem with this bill, from a Democratic standpoint, is that most…

Corporate Tax Cuts: The Seen… and the Unseen

Since Donald Trump was elected President, the S&P 500 (INDEXSP:.INX,) has rallied over 21% or nearly 500 points. In our opinion, a good portion of the gain is attributable to his promise, as well as congressional efforts, to reform the tax code. In particular, the proposed sharp reduction in the…

Global Equities Still Riding Coattails of Economic Expansion

The Global Expansion Continues In this post, I will focus on the positive forces that are driving the global economy… and the benefit its offered to global equities. My goal is to provide an overview of some of the most important factors in the global economy and highlight how they…

The Difference Between Emerging Markets and Developed Markets

Anyone who has been paying attention to emerging markets will have noticed the very interesting price action going on there. But since it’s getting more and more attention, it’s worth revisiting the very definition of EM [Emerging Markets] vs DM [Developed Markets]. The chart in this article comes from a…

Decoding Janet Yellen’s Federal Reserve Message

“I know you think you understand what you thought I said but I’m not sure you realize that what you heard is not what I meant” – Alan Greenspan On July 12, 2017 in her semiannual testimony to Congress, Janet Yellen stated the following: “the Federal Funds rate would not…

Party Like It’s 1999: Equity Valuations At Historic Levels

Valuations Compared with Fundamentals “Today’s equity market valuations have only been eclipsed by those of 1929, and 1999.” Given the continuing equity market rally and multiple expansion, the quote above from prior articles, had to be modified slightly but meaningfully. As of today, the S&P 500 (INDEXSP:.INX) Cyclically Adjusted Price…

Historical Market Correlations: Copper Prices And GDP

Summary: The rising price of copper is probably a good sign that the global economy is non-recessionary. When copper has risen, so has GDP. But the converse is not true: falling copper prices have not signaled a slump in the economy. Copper prices are surging. The metal’s price is up…

Systemic Risks Rise As CPI and Global Trade Data Stall

The world’s markets are entering unchartered waters, forcing today’s retirees to be vigilant and discerning as never before. As a money manager, I am constantly researching data from a variety of sources so I can properly advise and position my clients, not only for how the markets are behaving today, but…

GDP Per Capita: Even Less Than Meets The Eye

Today’s lesson will look at GDP Per Capita, and economic data point that helps keep things in perspective. The most common statistic used to measure the size and growth rate of a nation’s economy is Gross Domestic Product (GDP). However, GDP as most commonly used can be a flawed measurement…