There are myriad reasons for the recent strength in our currency, but one of the simplest explanations is that despite its problems the US Dollar is still the “cleanest dirty shirt in the closet”. The fact of the matter is that the headwinds of over-indebtedness, soft labor trends and anemic private sector growth are not at all unique to the United States.
Most investors, economists, and pundits believe that interest rates here in the US have nowhere to go but up. But rates have dropped this year leaving some to wonder when the inevitable rise in interest rates will come.
With quantitative easing on its way out, the next important step from US policy makers will be to signal to the markets that they are ready to begin raising interest rates. Across the pond in Europe the situation is quite different, and monetary policy appears poised to move in the opposite direction as the US.
As we recently explained in An Update On The Fed, now that quantitative easing is on its way out the focus has shifted to when the Fed will begin to hike short-term interest rates. It’s hard to believe, but it is going on six years now since former Chairman Ben Bernanke took short term rates down to the zero bound.
We often hear advice on how to save and invest, but not a whole lot of attention is given to how to stick with our savings and investment plans through thick and thin. Emotions can reek havoc on our investment returns and lead to inadequate returns for the "average investor."
The recent memory of a nationwide housing collapse continues to keep home ownership rates down while putting upward pressure on rents, which are now growing faster than wages. If left unchecked, this could spell disaster for young professionals who are trying to keep their head above water and get off the debtor's merry-go-round.
If you do a simple google search of “market long in the tooth” you’ll discover how widely used this phrase can become once a market has been in a steady uptrend for a significant period of time. But when someone asserts that a bull market has grown long in the tooth what exactly are they trying to say?
Much of the research coming across our screen in recent days has highlighted the potential potholes in the road ahead for investors. More and more pundits are calling the structural integrity of the bridge into question, and people are beginning to guess how many more trucks might be able to cross before the whole things starts to crumble.
Janet Yellen is presenting the first of two days of testimony to Congress in which the Federal Reserve Chair will deliver prepared comments that is followed by grueling questioning. All eyes and ears are fixed on any additional guidance and insight Ms. Yellen might provide into when and how the FOMC might begin to shift its policies.
Over the past couple years, much attention has been given to the wealth gap here in the United States and around the rest of the world. The question we must ask is whether the current gap between the “have’s” and the “have not’s” creates a fundamental problem for our society and if so, how do we fix it?
After over a year of due diligence on peer-to-peer lending, we are happy to announce a new managed account offering for our clients on the Lending Club platform. For those that are still somewhat unfamiliar with peer-to-peer lending, we will review the industry and the lending process in this week’s Insight.