Author Archives: Rick Pendergraft

At Least One European Group Agrees With Trump Trade Ideas

Since President Trump launched his campaign to level the playing field in international trade, there has been a tit for tat between world leaders and the key players in the trade war. The U.S. President hasn’t found much support from foreign leaders—political or business. But he has had one prominent European group announce that they agree with him. German automakers ...

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GE’s Demise: Unsustainable Business Model or Changing Times?

When I saw the news that General Electric (NYSE: GE) would be replaced in the Dow Jones Industrial Average by Walgreen’s Boots Alliance (NYSE: WBA), it made me think about how much GE has fallen in the last 17 years. Not just how much the stock price has fallen, but in terms of the importance of the company and the ...

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Housing Industry In The Spotlight This Week

The week ahead is pretty light on economic reports, but there are a few that will be closely watched. A number of the reports that are due out involve the housing industry. We are scheduled to see six different housing industry reports during the week including housing starts and existing home sales for May. Of the reports that have analyst ...

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The Fed is in a No-Win Situation

When the Fed raised rates on Wednesday and changed its outlook to include two more rate hikes for 2018, the decision was met with some concern. The market sold off after the decision and statement as investors feared the rate hikes could be too much and the possibility that the action would cause the yield curve to invert. While those ...

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Inflation At Six-Year High and Could Keep Going

One of the reasons the Fed has been raising interest rates is to keep inflation in check. Earlier this week the Consumer Price Index showed that prices at the consumer level increased by 0.2% in May. The report also showed prices were up 2.8% over May 2017 and that is the highest year over year rate since February 2012. This ...

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Huge Week for Central Bank Activity

The historic summit between President Trump and North Korea’s Kim Jung Un in Singapore is going to garner a great deal of attention in the next few days. While it will definitely have an impact on financial markets around the world, don’t forget about the Fed meeting that concludes with a rate decision on Wednesday. In addition to the Fed ...

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Consequences of Tax Cuts Starting to Impact Markets

When the changes to the tax rates were approved in Congress last year, I voiced my concerns about possible unintended consequences. One major concern was the one-time special treatment for companies to repatriate overseas assets back into U.S. dollars and how that would drive the dollar higher against other currencies. The rally in the dollar didn’t take place immediately, but ...

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Trump Trade Policies Creating Stronger Alliances Overseas and Weakening Some Domestically

President Trump has continued his goal of reshaping international trade agreements and he has stepped up his proposed tariffs in order to get cooperation from other countries. The most recent targets have been some of America’s biggest allies—Canada, Mexico and the European Union. The Trump plan does seem to be creating some cooperation abroad, but not cooperation with the U.S., ...

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Month of May Sees an Increase in Market Dispersion

The month of May ended last Thursday, and it was a positive month for all four of the main U.S. indices, but there were considerable differences in the performance of the Nasdaq and Russell 2000 compared to the Dow and the S&P 500. For the month, the Russell gained 5.95% and the Nasdaq gained 5.32%. The Dow only managed a ...

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NBA Wants to Assess Integrity Fee on Bets: Seriously? NBA and Integrity?

Last month, the Supreme Court announced a decision that allows states to decide for themselves whether they will make sports betting legal or not. That decision has created some interesting responses from the sports world. Sports leagues have voiced concerns about the chance of games be fixed becoming greater. Colleges and the conferences have voiced similar concerns. The NBA has ...

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