As interest rates and inflation begin to rise, some fret that debt levels will cause a recession once again. However, there are two types of borrowings: fixed and variable. In a rising rate environment, these two loan types behave very differently. During the 2007 Great Recession, uncreditworthy borrowers, plummeting real estate values, and the proliferation […]
What’s the Bottom Line? Keeping an Eye out for Wage Inflation
For years now, market prognosticators have been warning us to expect inflation and the resulting increase in interest rates. As fiscal theories postulate, how can we have so much monetary stimulus without triggering inflation at some point? As we all know, the Federal Reserve proactively flooded the economy with money to create stability in the […]
Real Estate Gets Its Own Place
As you may have noticed, there is a new sector in the S&P! The new sector designation was driven by changes to the Global Industry Classification Standard (GICS). These standards are developed and maintained by the Morgan Stanley Country Index (MSCI) and Standard & Poor’s Index (S&P). The goal of this classification system is to […]
Follow the Money: Corporations Place Their Bets
Globalization is a trend that continues full speed ahead. Because they consider it an important piece of data, economists and governmental agencies measure money flow between countries by tracking foreign investing. There are two types of foreign investments: direct and indirect. Indirect is the one observed every day as investments flows between countries’ equity and […]
Voting on the Brexit
Will the United Kingdom Leave or Remain in the European Union? In recent years, there has been heated rhetoric in the United Kingdom (UK) about whether to stay in the European Union (EU). If all goes as planned, Britons will vote June 23 on a referendum about whether to leave or remain in the EU. […]
Do Not Fear the Bear! Managing Emotions During Volatility
An old Zen parable tells of two monks, sitting in the courtyard of their monastery, observing a flapping pennant. “The wind is not moving,” opined the one monk, “it is the pennant that is moving.” “No,” said the other, “the pennant is not moving the wind is moving.” The oldest and wisest Zen master of […]
