Category: Economics
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What A Year This Quarter Has Been
It has been a difficult quarter for investors. Major indexes entered bear territory (means down 20%). US treasuries, generally the safest of assets for when investors are scared, have had their worst year since the 70s (when interest rates go up, bonds go down). Commodities, which I generally say “they suck until they don’t,” have…
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The Economy: How Did We Get Here and Where Is It Going?
Markets have been getting a lot of attention lately beyond the financial media. The S&P 500 is down 21%, the tech-heavy NASDAQ 100 is off over 29%, and the smaller company-oriented Russell 2000 is down over 24% year to date. Investors have a lot of concerns over the economy right now: Investors are facing a…
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Will Rising Mortgage Rates Cool Hot Housing Market?
The housing market is hot. It has been surging since the beginning of the pandemic. The Federal Reserve cut interest rates to historic lows and began purchasing bonds and mortgage securities in an extraordinary effort to boost the economy. As a result, mortgage rates fell to historic lows and stayed there until very recently. Now,…
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Politicians Can’t Do Much About High Oil Prices
The price of oil is surging, and so is the debate over what is causing the fastest runup in recent memory. As we approach the midterm elections, candidates and the broader media will continue to discuss gas prices and inflation. What has caused the surge in oil prices, and can policymakers do anything about it?…
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Your Guide to Talking About Inflation
Inflation is on everyone’s mind at the moment. Many are unfamiliar with how this particular bout of inflation came about or how bad it could get. Or worse, some people know just enough to sound like they know what they are talking about on the subject. In this post, I will look at each of…
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Inflation Rates Are Rising: What You Need to Know
Inflation seems to be all the rage today with traditional and financial media, and for a good reason. Globally, inflation rates have increased significantly over 2021. Inflation rates are running higher for consumers than in over a generation, and that has many people asking: How does inflation work? Should I be concerned about inflation? What…
