24 Jun

Britain Votes to Leave the European Union

June 24, 2016Printer-Friendly VersionMany of us awoke this morning to the news of the British decision to leave the European Union. After a marriage of more than four decades, 72% of voters turned out to “leave” the EU by a slim margin of 52% to 48%. No doubt, the people have spoken. The vote also propelled the British Prime Minister David Cameron to resign.The 52% that voted to leave the European Union felt that remaining in the European Union meant less sovereignty, less control over immigration, increased crime and possibly even a higher risk of terrorism. Did they really know exactly what they were voti…

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16 Sep

Should the Fed Raise Interest Rates This Year?

September 16, 2015Printer-Friendly VersionThe Federal Reserve concludes its two-day meeting on Thursday and will announce whether or not they plan to raise interest rates, specifically the Federal Funds Rate. The Fed has kept the Federal Funds Rate at zero since 2008 and hasn’t raised the rate in over a decade. Since discontinuing its Quantitative Easing (QE) program in October of 2014, the market has been obsessed with when the Fed starts to raise interest rates. This obsession makes sense as the Fed has used “forward guidance” as another monetary policy tool in recent years. However, I believe the first increase in interest rates…

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22 May

Stock Market Returns & GDP Growth

Posted by hancockp Categories: Stock Market Economics GDP Emerging Markets IMF GMO

In my last article, I summarized the most recent World Economic Outlook from the IMF. In that report, IMF economists stated:The global recovery is expected to strengthen, led by advanced economies. Growth in emerging market and developing economies is expected to pick up only modestly.The gap between developed and emerging growth is expected to narrow, but for the most part, emerging economies are expected to have higher growth rates in the future. Some investors may infer that higher economic growth should translate to better equity market performance. There have been a number of studies on the correlation between…

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14 Apr

Growth Accelerating, Risks Remain

Posted by hancockp Categories: Economics Federal Reserve GDP Markets Monetary Policy

The International Monetary Fund released it’s bi-annual World Economic Outlook on April 8, 2014. Key takeaways from the report include:The global economy is gradually recovering from the 2008 debt crisis, but growth continues to remain below average and uneven across many countries.The IMF predicts global GDP growth of 3.6 percent in 2014 increasing to 3.9 percent in 2015.Risks to rising growth include low inflation, potential capital flow reversals, removal of central bank stimulus, and geopolitical uncertainties.United StatesGross domestic product (GDP) is defined as the market value of all officially recognized final goods and services within a country in a given year. GD…

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1 Apr

How The Economic Machine Works

Posted by hancockp Categories: Economics Inflation Interest Rates Markets Investing

Understanding the ins and outs of the economy can be very challenging. Ray Dalio is one of the brightest minds that we have today in the investment world. Dalio has written a wonderful article on how the economy works. He also produced a video on this topic that does a fabulous job of explaining in simple terms how our economy works.…

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