Last month’s letter mentioned the coronavirus’ potential to infect global supply chains. February showed the risk materializing along with more widespread impacts on travel. The Federal Reserve’s 0.50% rate cut on March 3rd did little to assuage investors, highlighting the limitations of monetary policy tools in “treating” the virus. Nevertheless, consumers are enjoying the benefits […]
Continue Reading ›November 2019 Economic Dashboard
In announcing their third rate cut for 2019 earlier this quarter, the Federal Reserve signaled that they believed this latest cut would be enough to support moderate growth and a continued buoyant job market. With the federal funds benchmark rate back down to a range of 1.5 percent to 1.75 percent, the focus now turns […]
Continue Reading ›October 2019 Economic Dashboard
Much has been in the news and on the minds of investors about a weakening US economy. Several developments in October helped to temper these fears, leading to a 3.3% rise in the S&P 500. Trade talks showed some signs of positive momentum, with the US and China announcing a “phase one” trade agreement. Better […]
Continue Reading ›August 2019 Economic Dashboard
August was a more volatile month than usual, triggered by both an escalation of the trade war with China and more indications that the US economy may be slowing more than expected. The S&P 500 had daily changes of over 1% on 11 of the 22 trading days in response to both rhetoric and economic […]
Continue Reading ›July 2019 Economic Dashboard
After a relatively good month for the stock market in July, the one-two punch of a disappointing Fed rate cut on July 31 and more tariffs on Chinese goods and its retaliatory currency devaluation in the first days of August have sent stock prices sharply lower. Markets like predictability (which usually comes at a premium) […]
Continue Reading ›May 2019 Economic Dashboard
Rising trade tensions with China and a surprise threat to impose tariffs on Mexico (related to the migrant crisis on the southern border) derailed the stock market in May. Indeed, the Dow Jones 30 Industrials ended the month on its longest weekly losing streak in eight years. Investors are fearing the multi-front trade disputes will […]
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