Author Archives: John Thomas

Ford Staying Innovative and Ahead of the Curve

Car historians and gearheads alike are taken aback by the recently announced move by Ford Motor Company that it will no longer make traditional sedan models in an effort to save costs and focus on SUVs. Before you stand on a chair and wrap the Venetian blinds around your neck, not to worry, the Mustang made the cut. While car ...

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American Consumers Gain Confidence in the Economy

Getting a boost from this year’s tax cut, the weekly consumer comfort index and bi-monthly consumer sentiment index have been hitting expansion highs as has the monthly consumer confidence index, according to today’s release by the Conference Board. If he hasn’t done so already, this is a Tweetable moment for President Trump. In what may be the most significant development, ...

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The Fed is Disconcerting to the Banking Industry Right Now

The Dodd-Frank Act is being scrutinized currently by banks, both large and small, as well as investors in the banking and finance sectors. Dodd-Frank Act stress testing (DFAST) is a forward-looking component conducted by the Federal Reserve and financial companies supervised by the Federal Reserve to help assess whether institutions have sufficient capital to absorb losses and support operations during ...

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Trump Tweets that OPEC is at it again

The latest topic of tweets coming from President Trump are in regard to oil prices.  West Texas crude closed at $68.40 Friday, continuing is strong run from the low $40’s in June. Gas prices in Washington and elsewhere in the country have topped $3.00 per gallon, a psychologically important point. With summer approaching, prices traditionally are likely to rise further. ...

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How Treasury Bonds Affect Your Stock Portfolio

Modern portfolio theory loosely states that it is the composition of stocks, bonds, and cash as a class that makes a difference in returns, not a particular stock or bond.  It is whether you are in stocks or bonds as an aggregate, as opposed to owning IBM or Microsoft. We find ourselves in a current financial environment that is testing ...

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Emergency Law Considered to Stop Chinese Takeovers

What started with protectionist tariffs, then swiftly advanced to currency manipulation, has now progressed to the possible utilization of a 1977 law known as the International Emergency Economic Powers Act, which could allow President Trump to declare a national emergency in response to an “unusual and extraordinary threat,” allowing him to block transactions and seize assets. Yes, we are again ...

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Trump Tax Cuts Will Increase Retail Sales

The question you have to ask yourself; what will I do with extra tax money from the Trump tax cuts this year. That’s a tough one for both you and economic analysts. On one hand, you would love to save, and increase the abysmal U.S. individual savings rate. On the other hand, it sure would be nice to have less ...

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White House Economic Advisor Kudlow Bullish on Economy

Larry Kudlow, President Trump’s chief economic adviser, expects Americans will see more benefits from the new tax law as the year progresses. Kudlow was adamant about his belief that the economy will grow at a solid 3% this year, and took exception to the figures put out by the Congressional Budget Office (CBO). While appearing on Fox News, Kudlow said the ...

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Chinese Currency Manipulation, Here is What It Means

Currency manipulation is nothing new. It has been taking place since the advent of money as a medium of exchange between different nations. Let’s look at the basic Economics 101 course on what currency manipulation generally means and how it influences foreign exchange rates. Concept One: Foreign exchange takes place when two countries trade together. Country A buys and sells ...

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Who Will Control the Market for Rare Earth Minerals?

Whenever you have a shortage of raw materials in the world, it historically has led to war. A few generations ago, Japan attacked Pearl Harbor within months of a U.S. oil embargo. In 2010, China embargoed exports of rare earth elements to the United States. For those of us who don’t remember much of the physical sciences from school, rare ...

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