The Wealth Blog
The Economy in Two Graphs
There are many ways to view economic progress. Some gauges take a narrow view; others are broad-based. One broad-based measure is consumer spending. It accounts…
Powell Pivots
The Federal Reserve and Fed Chief Powell are finally coming to grips with the idea that inflation may be a bigger problem than it initially…
Enter Omicron, Powell Retreats from Transitory
Black Friday turned into Bleak Friday for short-term investors. The Dow Jones Industrial Average shed 905 points (-2.5%), its biggest one-day loss in 13 months,…
‘Bleak’ Friday Selloff, Omicron, and Volatility
Stocks have seemingly been on an uninterrupted trajectory since the 2020 low. When equities are up sharply, unexpected bad news may act like a wrench…
Stepping on the Gas in the Fourth Quarter
GDP, which is the largest measure of economic activity, slowed sharply in Q3. But as the fourth quarter gets underway, early reports are suggesting a…
Fourth Quarter Growth Takes Off
Third quarter GDP slowed to an annual rate of 2.0% from Q2’s 6.7%. But early data suggest the economy is off to a quick start…
The Case for “Transitory” Loses Ground
For much of the year, we have listened to Federal Reserve officials argue that the surge in inflation is “transitory.” Transitory simply means temporary. Yet,…
The Fed’s Baby Steps
The Fed has been “talking about talking about tapering” for months. Last week, it stopped talking and started doing. The Fed will begin tapering its…
Economic Growth = Job Growth
If we were to review just two economic yardsticks—job growth and layoffs—we would get a feel for what’s happening to the economy. It wouldn’t be…
Fed Game Day—Change in the Air
The Federal Reserve concludes its two-day meeting on Wednesday. A rate hike isn’t expected, but it’s almost a foregone conclusion that the Fed will announce…
October Trick or Treating Yields Treats
Historically, September has not been kind to investors. Using S&P 500 data from the St. Louis Federal Reserve dating back to 1970, September ranks dead…
The Delta Variant and the Economy
Last week, anxieties briefly crept into sentiment amid rising Covid cases. Outside of health concerns, investors are reviewing various signals as they try to get…