Economy

Airline Market Trends

After all the hardship, it appears the main impetus for ending the federal government shutdown in January was its impact on air travel. On January 25, the FAA began restricting flights into and out of New York’s LaGuardia Airport due to a shortage of air traffic controllers. Prior to this, there had been reports of…

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2019 Market Prognostications: What the Experts Say

By the end of 2018, not one of the eight asset categories tracked by Ned Davis Research was on track to post a return greater than 5 percent. Since it’s common for the market to yield at least some “winners” and “losers” among asset classes each year, this was a significant phenomenon that hasn’t occurred…

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Drug Prices Continues An Upward Climb

In the first month of 2019, pharmaceutical companies have increased prices on more than 250 prescription drugs despite calls from the president and Congress to reduce drug costs.1 These hikes have evoked the ire of President Trump, who has pledged to reduce drug prices in the United States, which are higher than in most other…

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Stability Grows for Emerging Markets

Thirty years ago, developed markets were seen as much more stable than smaller, emerging countries. But as political division and uncertainty permeates the West, the differences have faded, and emerging markets (EM) have shed the high-risk perception that accompanied foreign investment. Sound government situations, conservative monetary policy and lower levels of debt were once staples…

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Trade Agreement Updates

In the new U.S.-Mexico-Canada Agreement (USMCA), which would replace the North American Free Trade Agreement (NAFTA), among gains for the United States is a new provision negotiated with Mexico related to auto products. Under the new terms, to qualify for tariff-free sales, 75 percent of automobile materials must be produced in the United States and…

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Trade Wars: More Context

In particular, automobiles seem to be in the crosshairs of President Trump’s hard line on trade with the rest of the world. Here are a few reasons why:1 • U.S. auto production represents about 2.7 percent of GDP.• There are more jobs in motor-vehicle assembly than in computers and electronics, chemicals, motor vehicle parts, plastics…

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Inflation: Expectations for 2018

It seems as if inflation has been biding its time. Since the financial crisis a decade ago, growth in prices and wages has been muted.1 However, many financial analysts believe that’s about to change. A jobs report from early March revealed continued hiring and a moderate increase in wages. The stock markets welcomed the news,…

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Financial Strategies in 2018

One philosophy of investing, as opined by Warren Buffett, is to be “fearful when others are greedy and greedy when others are fearful.”1 The nation’s eight-year bull market, however, has tested that philosophy. Most market analysts would agree that it was more important to be in the market and taking advantage of gains than to…

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