To fight inflation, the Federal Reserve has been raising interest rates in what’s referred to as a tightening cycle. Rates have climbed steadily by 75 basis points (3/4 of 1%) until the most recent Federal Open Market Committee meeting when the tightening was reduced to 50 basis points or a ½ of 1% increase. The […]
A PARADIGM FOR BUYING CORPORATE BONDS Read More »
During inflationary times investing can be frustrating as the measuring stick (U.S. dollar) used to determine the value of future returns keeps getting smaller. With inflation comes the antidote of higher interest rates. Inflation and higher interest rates don’t automatically spell doom for investors, but some changes to retirement portfolios and the way investments are
AN INVESTOR’S GUIDE IN AN INFLATIONARY ECONOMY Read More »
Inflation has a significant and sometimes severe impact on the overall economy. The impact on prices can be felt far and wide in the world of commerce, but an even greater concern is the impact of inflation on the investment sector. With rising interest rates, the stock market has whiplashed up and down with volatility.
INFLATION’S IMPACT ON PENSION FUNDS Read More »
A few years after the end of World War II, George Marshall, a former general who became the U.S. Secretary of State, put together an aid package to help the economies of the war-torn countries in Europe to rebuild. This package was referred to as the Marshall Plan. As another war in Europe is now
WILL THERE BE A NEW MARSHALL PLAN FOR EUROPE? Read More »
On November 8th of this year, FTX, a major cryptocurrency exchange, entered into a letter of intent to be sold to Binance, a rival cryptocurrency exchange. The very next day, Binance pulled out of the deal having had a chance to look at FTX’s books. On November 11, FTX filed for bankruptcy. On November 13,
THE CRYPTOCURRENCY CRASH OF 2022 Read More »
In today’s world we are familiar with giant international corporations that dominate industry, commerce, and technology. But one of the largest in history dates back to the year 1600 in England—The British East India Company. It rose to become not only a trading corporation, but a nation-state as it reaped massive profits primarily from places
THE RISE AND FALL OF THE BRITISH EAST INDIA COMPANY Read More »
Surging inflation has forced central banks including the Federal Reserve to raise interest rates. Their objective is to cool down the economy without disrupting normal activities in financial markets. Interest rate increases initially impact financial institutions that borrow from central banks. From there the increases are gradually passed on to other lenders in the chain
WHAT HAPPENS TO FINANCIAL MARKETS WHEN INTEREST RATES RISE? Read More »
Owning your own home in this country has long been thought of as the American Dream. Home ownership at any affordable cost has been the aspiration of American families since colonial times. It meant lots of hard work and sacrifice, and a long-standing debt that required monthly payments. It’s often the largest single investment an
HOME OWNERSHIP…IN CHINA Read More »
It’s been nearly seven months since Russia’s military forces invaded sovereign Ukraine. The response in Western Europe and North America has been to levy sanctions against Russia in an effort to hobble its economy, and force it to seek peace in the region. These sanctions have also unleashed a backlash from Russia that’s resulted in
ARE THE ECONOMIC SANCTIONS ON RUSSIA WORKING? Read More »
The economy is now in the midst of serious inflation unseen for over forty years. This condition could give way to a long, frustrating period of stagflation as occurred in the 1970’s. Those who were around in the developed world in those days got a good first-hand look at stagflation and what it can do
ARE WE HEADING FOR A PERIOD OF STAGFLATION? Read More »