WSJ – Daily Shot

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Aug 272018

There were a couple of very interesting  charts in today’s Daily Shot.

First is a blurb attributed to Jerome Powell, which suggests that the Fed is likely to continue on its slow but steady path of rate increases.

The second item relates to the relative attractiveness of stocks versus fixed income. It shows, at least on a current income basis, dividend income is now no longer a particularly attractive benefit for owning equities versus fixed income assets.


This morning lead at Seeking Alpha

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Aug 212018

This was the lead blurb on Seeking Alpha this morning.

Obviously good news historically, but what about looking forward?

The S&P 500 will tie the record for the longest U.S. bull market in history today at nearly 3,500 days, rising more than 320% since March 9, 2009. It’s a record few would have predicted when stocks struggled to find their footing after a 50% plunge during the financial crisis. There is still no shortage of bearish warnings out there as analysts debate the future, but many investors continue to see plenty of gas left in the tank for equities.

Interesting Chart

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Aug 202018



This chart was in one of the daily email updates from the Wall Street Journal.

I’ve always found it interesting that there were so many mutual funds and exchange traded funds trying to build ‘different’ portfolios from the rather limited number of listed companies.

However this trend of decreasing publicly traded stocks is probably not necessarily a good thing for small investors who won’t have access to some of the potentially more dynamic companies that have chosen to go or stay private.

So for the moment, we are down about half the number of companies that were public 20 years ago.

Tariff Impacts

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Aug 102018

This is an interesting chart from today’s Wall Street Journal.

For the bottom 10% of tax payers, the trade war will not be fun.

Ag Economy & Tariffs

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Aug 082018

Here are a couple of tidbits from today’s Wall Street Journal.


Lot’s of things to think about with regard to tariffs. It is perhaps possible that with a well thought out policy with regard to the selective use of tariffs, that a protectionist policy would make viable economic sense.

But, I still am of the opinion that the current tariff planning is lacking in thoughtfulness and as a result likely effectiveness.

Budget Deficits

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Aug 062018

For one, I’m not too overly concern about United States Governments running a Budget Deficit. However, there are limits!

I’m not sure if 5% of GDP is a magic number, but that does start to seem like quite a bit. I would say this is especially so when for all practical purposes, the economy is doing fine.

If the US Economy was in recession, or worse, deficits of that scale would likely be reasonable. But, when we have been in a steady recovery for 10 years, running a growing budget deficits seem like the wrong tactic.

Anyway, this chart from today’s Wall Street Journal provides some historical perspective.

Trade Wars

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Aug 022018

Per the President, trade wars are easy to win.
I, for one, am not convinced.

This looks like it has the potential to be quite messy, especially for farmers and consumers.