Investment

June 12, 2020

Loose and Staying Loose (a report from First Trust Advisors, L.P.)

The most important takeaway from today’s Fed meeting is that policymakers don’t expect to raise short-term interest rates until at least 2023.  The Federal Reserve’s “dot plot” shows where policymakers think short-term interest rates will be at the end of this year, 2021, and 2022 and these show that no members of the rate setting committee – literally, none – think rates will go up this year or in 2021 and that only a small minority thinks they’ll rise in 2022.  Moreover, the median estimate among policymakers is that the unemployment rate will finish 2022 at 5.5%. In the aftermath […]
June 11, 2020

The Recession Is Over (a report from First Trust Advisors, L.P.)

The recession that started in March is the sharpest downturn since the Great Depression. As it turns out, it was also the shortest. Friday’s employment report should leave little doubt that the US economy has already hit bottom and is starting to recover. Every economist brave enough to make a public forecast thought nonfarm payrolls would drop in May and the unemployment rate would continue to rise. Instead, it was the opposite: nonfarm payrolls rose 2.5 million, and the unemployment rate dropped to 13.3%. This doesn’t mean the US is fully recovered, or even close; a full recovery is going […]
July 12, 2016

Can I get an Aspirin?

The headaches from the months of June and July have been nothing short of nerve-wrecking! From Brexit, police shootings, world bombings, mass shootings, the Fed indecision, market rally to all-time highs, and to top it off, a political discourse that is unbelievable. This has led to some extremely dramatic discussions by the left and the right. As an investor, what are you to make of this environment and how do you invest during this kind of chaos? Remember to stay focused on the long term. Don’t make drastic decisions based on your mood of the day. Investing with your emotions […]