Strong jobs report shows wage growth
Today, the Los Angels Times reported that “Employers added 257,000 net new jobs in January as hourly earnings increased’. I expect that this information, along with low energy prices, rising housing prices and extremely low interest rates will likely be the catalyst for the Federal Reserve’s Board of Governors to begin raising the discount rate Read more ➝
ECB Stimulus exceeds forecasts
The European Central Bank announced a monetary stimulus package that exceeded most economist’ expectations and may be just what the doctor ordered to bring life back to the European Union’s economy. The Los Angeles Times reported (CLICK HERE to view article) that the ECB will enter into a bond buying program through September of 2016 Read more ➝
Deflation Fears Likely Overdone
In the January 11, 2015 issue of the Los Angeles Times, Tom Petruno examines Wall Street’s latest “Worry Du Jour”, Deflation and provides ample evidence that deflationary fears are likely overdone. Although it is true that energy prices have recently fallen dramatically, healthcare and food costs have not followed. Also, lower energy prices are usually Read more ➝
This Era of Low-Cost Oil Is Different
In a recent LinkedIn post, Mohamaed El-Erian, Chair, Investment Advisory Committee at Microsoft, makes the case for lower oil prices for some time to come–the political and economic consequences of which could be dramatic. CLICK HERE to view his post.
Could Apple be considering the iTesla?
Shares of Tesla surged on Tuesday as investors speculated on a merger between Tesla and Apple after Tesla CEO Elon Musk was rumored to be meeting with Apple’s head of mergers and acquisitions team, Adrian Perica, this according to the Los Angeles Times. The move marked the first time the Tesla closed at more that Read more ➝
Steady Economic Recovery
Today, the Los Angeles Times reports that the State of California is poised to experience a steady pace of recover in the next two years in the area of job growth. This according to the Los Angeles County Economic Development Corporation. Orange County is leading the charge followed by Los Angeles County and the Inland Read more ➝
$85 Billion in Fed Stimulus but still no inflation. What’s up?
These days we hear a lot about Federal Reserve stimulus and the hazards that come with it, not the least of which is inflation. Well, according to recent data, it turns out that inflation is not rising and in fact is falling. With the Fed buying back $85 billion per month in mortgage backed securities Read more ➝
Tax overhaul bill put on hold
Buried in an article about the House Ways and Means Committee Chairman Dave Camp postponing and extenders bill was some very interesting information about another bill that he is working on. One that would reduce the maximum income tax rate to 25% but also do away with or eliminate mortgage interest deductions–sacred to most homeowners Read more ➝
With stock funds, ‘passive’ keeps beating ‘active.’
A client of ours shared an article with us from the October 6th, 2013 issue of the Los Angeles Times titled, With stock funds, ‘passive’ keeps beating ‘active.’ But many investors still gamble. I guess he remembered me making this same statement, as I am sure most of my clients have also heard. Although Read more ➝
