In many ways, though, the overall stock market, economy and Federal Reserve policy don't suggest that a bear market is looming, say longtime money managers and economists. While continued turmoil in stock prices is likely, bear markets usually occur "when the Fed is trying to slow the economy down and other events intervene to make things worse," says Ethan Harris, [...]
Herb Stein was an economist that drew the unenviable task (though I don’t think he saw it as such) of being chair of the Council of Economic Advisors under Presidents Nixon and Ford. He was a man who knew imbalance up close and personal. To that end, he once quipped, “Economists are very good at saying that something cannot go [...]
Before 1950, if you asked who owned stocks, the answer was very straightforward: wealthy individuals. Ninety percent of all equities were owned by the household sector, concentrated in the wealthiest segments. Most individuals had little savings to speak of, so stocks really were a plaything of the rich. All data below is taken from the Federal Reserve’s Financial Accounts of [...]
The stock market pulled back last week and we are now in the midst of a mild correction, down all of 3% from the all time highs set just a couple of weeks ago. It has been an extremely orderly retreat so far with the volatility index barely budging from its recent lows. The natural question is whether this is [...]
The idea of recession in the context of a “recovery” is somewhat maddening from a conventional standpoint. A recovering economy is not supposed to be subject to a reversal, particularly in the presence of so much “stimulus”. However, there is precedent for just this sort of pattern, including Europe right now. In our own experience, the 1930’s offered exactly this [...]
Stay In Touch