@theMarket: Inflation and Tariff Fears Drive MarketsBy Bill Schmick,
02:52PM / Friday, February 21, 2025 | |
Gold continues to make new highs. Soft commodities and materials climb a wall of worry and foreign equities rise from the dead. It is all part of a market mindset that a tariff war is right around the corner.
As April draws near, President Trump continues to reiterate that he is planning to levy tariffs on America's trading partners. Investors are worried. Given Trump's predilection toward hyperbole, the markets are unsure whether to take his statements at face value. He has used threats to get what he wants on so many occasions that April could come and go without any tariffs at all. What to do?
The move higher in some commodities is largely a 0 Comments
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The Retired Investor: Are Federal Asset Sales a Solution to Debt Problem?By Bill Schmick,
04:16PM / Thursday, February 20, 2025 | |
At last count, the federal government owns 28 percent of the total land in the U.S., and under the surface of that real estate lies a wealth of oil, gas, and coal. Does selling off federal assets make sense in this era of downsizing government?
President Donald Trump plans to shrink the federal government through firing, hiring freezes, and layoffs. The only personnel spared are those in military enforcement, national security, and public safety. Everything else is fair game.
Earlier this month, regional managers at the General Services Administration (GSA) received memos from headquarters directing them to terminate the leases on approximately 7,500 federal 0 Comments
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@theMarket: Higher Inflation Signals No More Rate CutsBy Bill Schmick,
04:04PM / Friday, February 14, 2025 | |
For the fourth straight month, the Consumer Price Index registered higher inflation. That has dashed any hope that the U.S. central bank would loosen momentary policy further in the months ahead. And now the country faces even higher prices if tariffs go into effect.
The most recent University of Michigan survey of consumers indicated that inflation expectations for the next year increased to 4.3 percent in February. That is one percentage point higher than January and the highest since November 2023.
Wednesday's Consumer Price Index (CPI) data for January increased 3 percent over the prior year and 0.5 percent over the previous month. That surprised 0 Comments
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The Retired Investor: A Different View on Interest RatesBy Bill Schmick,
04:41PM / Thursday, February 13, 2025 | |
Scott Bessent, the nation's new Treasury secretary, is a product of the investment world. His private sector background brings to the government a different set of tools and ideas that may lessen the burden on the Federal Reserve Bank in its fight against inflation.
For decades, politicians of both parties with few exceptions have left it up to the Federal Reserve Bank to curb inflation while maintaining employment. It has been a tough job, especially when fiscal policy is working at cross purposes with their mandate. The fly in the ointment over the last several decades has been that while the central bank has been largely insulated from political pressures and has 0 Comments
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@theMarket: Turmoil Keeps Investors on Their ToesBy Bill Schmick,
03:14PM / Friday, February 07, 2025 | |
Two Mondays in a row, investors have had an opportunity to buy the dip in the stock market. In February there may be even more chances to do so depending on geopolitical developments.
For the source of much of this week's volatility, one need look no further than the White House. The number of executive orders has ramped up further. On-again, off-again tariff talks sent traders into despair, and then giddiness.
In the few hours between daily press conferences and announcements, markets held their breath with one finger on the buy button and the other ready to sell. If you throw in geopolitical news on topics such as Gaza, Greenland, Panama, Iran, 0 Comments
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