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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28 Apr

Negative Interest Rates

April 28, 2015Printer-Friendly VersionImagine the following scenario: You wake up one morning and decide it’s time to open a new bank account. You gather your personal information, head to your local bank and sit down with a banker. You: “I would like to open a new bank account.”Banker: “Sure, what type of account are you interested in?”You: “Well, I’m not sure, what are your interest rates?”Banker: “Our current interest rate is negative 0.50%.”You: “Come again?”Banker: “Negative 0.50%.”You: “So, if I deposit $50,000, it will cost me $250 per year?”Banker: “Yes, but you could invest in our 2-yr CD. We have a new special rate…

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14 Jan

The Grand Monetary Experiment

January 14, 2015Printer-Friendly Version“And so the miracle of the debt supercylce meets a logical end when yields, asset prices and in the increasing amount of credit place an unreasonable burden on the balancing scale of risk and return. Too little return for too much risk” – Bill Gross, January 2015Markets By The Numbers – 2014 In ReviewStocksGlobal stocks ended the year up 4.2%. There was quite a dispersion between U.S. stocks and international stocks as international developed and emerging market stocks recorded losses for the year. Continued concerns regarding slowing growth and a risk of deflation in the Euro-zone impacted international developed stocks. Slowing…

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13 Oct

End of an Era

October 13, 2014Printer-Friendly Version“An era is ending: for over half a decade, nearly worldwide, zero interest rates suppressed volatilities. That is over. More and exciting volatilities lie ahead.” – David Kotok, October 5, 2014The third quarter ended eventfully with a resurgence in world-wide volatility in stock prices, interest rates, currencies and commodities. This volatility carried over into October as most days so far the Dow has experienced 100 to 200 point swings rather routinely. A lack of global liquidity has also created a resurgence of volatility as the Federal Reserve wraps up its quantitative easing (QE) program. It’s no secret that QE aids global l…

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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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