Fed Being Tempted Into SIN. We think consistently higher inflation is a bad idea. Printing more money is not a path to sustainable prosperity. Higher inflation would make business planning more difficult and reduce the "real" (inflation-adjusted) wages of workers, particularly those with the least bargaining power, including lower-income workers.
Capitalism vs. Socialism. The history of the world has been a battle between two competing ideologies of how resources should be distributed: Capitalism and Socialism.
Projecting Government. Three major issues related to government policy are now looming large among investors’ concerns.
The Seeds of Stagflation. With the money supply having risen so rapidly, and the ability of the economy to keep up with that growth diminished by a more burdensome government, stagflationary pressures (slower growth, higher prices) have been building.
Inflation, Shutdowns, Spending...The economy is healing rapidly, the bull market remains intact and technology is raising potential future growth. But, government actions could undermine these positive trends. For now, we remain bullish.
Strong Economic Growth in Q2. Remember, though, that much of the recent rapid growth we’ve seen is really just a “sugar high.” Look for economic growth to slow in the second half of the year, and then even more so in 2022.
S&P...4,500 or Higher? This does not mean the market always goes up. It doesn't mean that the government is not creating future problems. But, we don't try to time the market. What we do is focus on fundamentals, like profits and interest rates. And right now, we believe the S&P 500 is still undervalued.
Target Date Funds: A 'Time Bomb' in a Retirement Tool for the Masses? What You Need to Know...
"Twin Deficits" Won't Tank the Dollar. Many analysts have been thinking and writing about the "twin deficits" and whether the record-breaking size of those two deficits, combined, means the US dollar is about to plummet versus other currencies.
One of the key decisions President Biden will make later this year is who is going to run the Federal Reserve for the next four years... We think the choice will ultimately come down to two people: Roger Ferguson or Jerome Powell.