Economy and Trends

European Central Bank – Tightening Could and Should Accelerate

Last week the European Central Bank (ECB) released the minutes from its rate-setting meeting in December and the notes revealed that the bank’s tightening strategy could move faster than originally anticipated. This revelation came just a few days after the Bank of Japan (BOJ) released a similar statement. The BOJ revealed that it had made fewer bond purchases than investors ...

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Inflation: The Danger of a Booming Economy

Although most financial analysts are optimistic about the future of U.S. economy under the Trump administration, the more consumers spend the more inflation becomes an issue. The price of consumer goods is on the rise. The Labor Department reported at in December consumer prices increased by .03%. Compared to last year, food and energy pricing is up by 1.8%, which ...

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Bombardier and Embraer: Midsize Jets Are Hot

In November 2017, United Airlines made headlines when it celebrated the final flight of its last Boeing 747 by making it a public relations event.  The special flight from San Francisco to Honolulu was sold out hours after it was announced.  United treated customers to a pre-launch party, on-board festivities and a few special loops around picturesque San Francisco Bay. ...

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Possible Unintended Consequences of the Tax Bill: A Strong Dollar, Rising Interest Rates, Inflation

While Republicans were celebrating the passing and signing of the tax bill last week, many others were concerned about possible consequences of the tax cuts. One unintended consequence that could negate some of the possible economic gains is a stronger dollar. Part of the tax bill that is supposed to boost economic activity via corporate spending is the one-time tax ...

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CDC: American Life Expectancy is Declining

US life expectancy fell for the second consecutive year in 2016, announced the CDC on Wednesday. This is the first time we’ve seen a multiyear drop in life expectancy since 1962. “It’s certainly concerning to see this two years in a row,” says Bob Anderson, who leads the CDC’s mortality statistics branch. According to the report, the average life expectancy is 76.1 ...

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Food Stamps: Enrollment and Spending Continue to Fall

Federal spending on SNAP (food stamps) hit a 7-year low in 2017 as more Americans got off welfare and went back to work. SNAP spending increased dramatically during Obama’s presidency, climbing from $37.6 billion to $53.6 billion after his first year in office. Spending peaked in 2013, when the government handed out $79.8 billion to more than 47 million recipients. The ...

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Special Report: 2018 Sector Outlook

With only a few weeks of trading left before we close the books on 2017, we thought it would be of interest for our readers to look ahead to 2018 and evaluate each of the main sectors. Most of the domestic indices are at or near all-time highs and investor sentiment is reaching extremely optimistic levels. While the new highs ...

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Rising Economic Tide Lifting Many Retail Boats

On Wednesday, November 29, 2017, the Commerce Department reported Wednesday that U.S. economic output grew at a 3.3% annual rate in the third quarter, faster than earlier estimated, and the highest rate in over three years. Meanwhile, consumer and business confidence are at recent-year highs and equity markets continue to surge to new all-time highs. This strong growth belies contentions ...

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GDP Grew More Than Predicted in the Third Quarter

The U.S. Economy has hit an impressive milestone. In the third quarter, the gross domestic product (GDP) grew by 3.3%, even with the tough hurricane season. This is the fastest rate seen in the last three years. In 2016, the economy saw merely 1.5% growth. “It was the first time actual gross domestic product had exceeded potential GDP since the ...

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