Inventing the Impossible You can’t beat the market. Investors have been told repeatedly it is impossible to beat the market and instead, investors are told to buy index funds. Only professional money managers can beat the market, and while luck does play a role, few managers beat the market over long periods of time. For … Read more
Can the Economy Boom with the Fed Raising Interest Rates? In 2016, the Federal Reserve began hiking the Federal Funds rate, or the bank-overnight rate. In October 2017, the Federal Reserve began unwinding their balance sheet. Both actions are causing short-term interest rates to rise. The Fed chose a gradual path of increased rates to … Read more
Hurricane Force Inflation Since President Trump took office the mainstream media has been pounding the drum, predicting inflation is coming. Financial analysts are also sounding the inflationary alarm, as nearly every financial blogger, tweeter, radio host, author and financial advisor has models showing inflation is going to rapidly rise. Despite all the talk of inflation, … Read more
The Fed’s Printing Press is Broken In the wake of the Great Financial Crisis of 2008-09, the Federal Reserve unleashed a flurry of monetary-policy tools to prevent the global banking system from triggering a global depression. Some of the tools had been used before and some were new, or experimental. In the eight years that … Read more