Closing the Gold Window Opened the Door to Modern Monetary Theory (MMT)
In the years since the end of the gold standard, there’s been a significant lack of discipline in government spending. Today, the federal debt is closing in on an astronomical $28 trillion, which is more than 130% of the size of the U.S. economy.
America's Driving Habits as of November 2020
"Travel on all roads and streets changed by -11.1% (-28.9 billion vehicle miles) for November 2020 as compared with November 2019. Travel for the month is estimated to be 231.6 billion vehicle miles." The 12-month moving average was down 1.01% month-over-month and down 12.5% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) was down 1.07% month-over-month and down 12.8% year-over-year.
The Heavy Lifting
Wall Street and Main Street are two different zip codes. In 2020, one neighborhood struggled with rising economic uncertainty, while the other posted strong gains underscored by a loose fiscal and monetary environment. In 2021, we expect the neighborhood's economic fortunes to converge.
Existing-Home Sales in 2020 Highest Since 2006
This morning's release of the December Existing-Home Sales showed that sales rose to a seasonally adjusted annual rate of 6.76 million units from the previous month's revised 6.71 million. The Investing.com consensus was for 6.55 million. The latest number represents a 0.7% increase from the previous month.
Should Bondholders Keep Faith in Europe’s Banks?
For European banks’ stockholders, 2020 was a year to forget. But bank bondholders enjoyed positive returns and may overcome COVID-19 challenges again in 2021, backed by solid balance sheets and supportive regulatory conditions.
When Markets Are Recovering, Don’t Ignore Volatility
Global stocks rebounded sharply from the coronavirus market crash in 2020, but the ride was rocky. With so many risks clouding the outlook, we believe that investors should focus on generating a smoother pattern of returns through the recovery from COVID-19.
New Year, New Reasons to Diversify with Precious Metals
While the COVID-19 pandemic presented unprecedented challenges around the world in 2020, there are hopes that 2021 will see an economic recovery as businesses adjust to the new normal. With the dollar continuing to weaken and uncertainty surrounding the ultimate outcome of the fight against this virus, investors are focusing on precious metals as a potential investment solution. In this webcast, Steve Dunn, CIMA®, Head of Exchange Traded Funds, and Stan Kiang, Director of Strategic Accounts, will speak on behalf of Aberdeen Standard Investments to review the performance of Precious Metals in 2020 and provide an outlook for the new year. They will also explain why we believe precious metals are a critical component of a well-diversified investment portfolio. This webinar will discuss current events in this corner of the financial markets and layout the fundamentals underlying the need for a longer-term, strategic allocation. This webcast is eligible for Continuing Education (CE) Credit.
Yellen Opens Debate on Giant Spending, Saying the ‘World Has Changed’
Janet Yellen invoked an enduring era of low interest rates in delivering the Biden administration’s opening argument to lawmakers for its $1.9 trillion Covid-19 relief proposal.
Philly Fed Mfg Index: Continued Growth in January
The latest Manufacturing Index came in at 26.5, up 17.4 from last month's 9.1. The 3-month moving average came in at 18.8, up from 18.1 last month. Since this is a diffusion index, negative readings indicate contraction, positive ones indicate expansion. The Six-Month Outlook came in at 52.8, up 9.7 from the previous month's 43.1.