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The Vulnerability of Private Wealth to Government Financial Stress
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QEs, Currency Wars, the Trillion Dollar Platinum Coin and the Route to “Modern” Inflation
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Roadblocks to Recovery an Interview with Dr. Lacy Hunt
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Frank Beck on Investing in Uncertain Times
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The Vulnerability of Private Wealth to Government Financial Stress
Tag Archives: Profit Margins
The Cats and Dogs of the Equity Markets
Driving the economy to fuller employment is a macroeconomic policy success. But it comes at a cost of higher employee costs and generally reduced profit and stock returns. Some firms, in this global economy, produce with foreign labor and benefit from weaker foreign currencies. Hence, there will be both purring cats and offsetting dogs in diversified portfolios. Investment returns call for targeting those firms gaining cost advantages via foreign labor. Continue reading
Posted in The Spellman Report
Tagged Diversification Unit labor cost, Economic Policy, Economy and financial market pricing, Full employment and profit, Helicopter money, interest rates, monetary policy, Political economy, Profit Margins, Reserve currency, Stock price returns, US Sovereign risk and investing, wealth preservation
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Economic Direction as Seen Below the Radar
The economy has been in a growth rut for six years with one large shock after another. But there is also a cyclical component to GDP growth that lives a life of its own and can drive an economy. The very low levels of plant and equipment spending since the tech boom of the 1990s leaves the US with aging physical plant and rising labor costs. This should stimulate business capital investment and keep the cyclical ball rolling but at reduced profit margins and a tinge of inflationary pressure. Continue reading