2021 ended like a lion for equities, as 2022 is looking like it may be a lamb. Technology stocks continue to sell off after a two-year run of fantastic returns, but they are always in contention to reemerge as market leaders moving forward. Generally, the Indexes did very well, while most active managers struggled to match returns. We now have the old dogs emerging as leaders for the new year including energy, financials, and maybe utilities (for the first half of the year). These boys have not led the market for over ten years. Let’s see if they really emerge and hold their positions; I tend to doubt it. But the reality is nothing has really changed in the underlying economy, even as ...
Read morePosted on 01/23/2022 at 07:29 PM
Social Security recipients are due to receive the largest increase in benefits in six years. But for many recipients, the increase in payments will go towards higher Medicare costs.
The Social Security Administration announced a 2% increase in benefit payments effective in late December 2017 for disability beneficiaries and in January 2018 for retired beneficiaries. The 2% increase is the largest increase since a 3.6% increase in 2012.
Many are concerned that the 2% increase may not cover expenses that are rising at a faster rate, including other essential items such as food and housing. The latest increase also affects the premiums for Medicare Part B, which covers doctor visits and outpatien...
Read morePosted on 11/17/2017 at 05:47 AM
China Produces More Cars Than The U.S. – Global Trade
Just as the U.S. auto industry mushroomed after WW II and during the 1950s, the same is occurring in China. It’s not just Chinese branded automobiles that are being made in China, but well known foreign brands as well. As the demand for cars has skyrocketed in China over the past two decades, foreign manufacturers recognized an expanding market and started producing their own brands within the country in order to sell directly to Chinese drivers.
Foreign manufacturers have found it more profitable and feasible to manufacture cars in China in order to meet exploding demand. German, American, and Japanese automakers now populate ...
Read morePosted on 09/02/2017 at 07:05 AM
A Brief History Of Tax Cuts – Historical Note
For nearly a hundred years, tax cuts have been a centerpiece of political strife among politicians, with both parties at times lobbying for lower tax rates.
An accepted belief has been that lower taxes widen the Federal deficit and provide no economic expansion. Contrary to this belief, prior tax cuts enacted by various presidential administrations actually yielded economic growth and higher revenues for the Federal Government.
During the 1920’s, tax rates were lowered from over 70% to less than 25%, resulting in an increase in tax revenue from $719 million in 1921 to over $1.1 billion in 1928.
Following the dramatic tax increases during the 1930’s i...
Posted on 05/15/2017 at 01:09 PM
For nearly a hundred years, tax cuts have been a centerpiece of political strife among politicians, with both parties at times lobbying for lower tax rates.
An accepted belief has been that lower taxes widen the Federal deficit and provide no economic expansion. Contrary to this belief, prior tax cuts enacted by various presidential administrations actually yielded economic growth and higher revenues for the Federal Government.
During the 1920’s, tax rates were lowered from over 70% to less than 25%, resulting in an increase in tax revenue from $719 million in 1921 to over $1.1 billion in 1928.
Following the dramatic tax increases during the 1930’s imposed by President Hoover and Pr...
Read morePosted on 05/15/2017 at 01:04 PM
Macro Overview
A change in sentiment was prevalent throughout the markets as new rules and regulatory reversals began to take effect. Volatility rose as markets tried to discern President Trump’s policies.
Equity markets propelled to new highs in January as optimism fueled U.S. equities, sending the Dow Jones Industrial Average to a new milestone level of 20,000. The S&P 500 Index and the Nasdaq Composite Index also reached new highs during the month.
Executive orders undertaken by the President were able to derail several rules signed into law by the Obama administration, yet fiscal policy initiatives proposed by President Trump such as tax cuts and tax reform need Congressional approval...
Read morePosted on 02/12/2017 at 04:42 PM
