State of the Economy: Best not to overpredict. Unexpected events can never be predicted and they are what cause markets to move the most in the short-run. We know that leading economic indicators are in recession territory but other factors such as labor market growth and earnings are merely slowing. Contradictory data tells us nothing… Continue reading November 2022 Stock and Fund Picks
Category: Economic Policy
Activist Monetary Policy Conundrum
Recently, many economic and FED commentators point out that if we have a recession we will need a tighter FED balance sheet and higher interest rates in order to fight the recession using stimulative monetary policy. At the same time, others have pointed out that if interest rates get to high it will cause a… Continue reading Activist Monetary Policy Conundrum
The Border Adjustment Tax (BAT) is really GREAT!
Economists seem less worried about it for several reasons. First, other countries we trade with use the same thing against us. Second, a BAT is not a trade restriction such as a tariff or quota that the World Trade Organization (WTO) can overturn as being in violation of a previous trade agreement. Third, a BAT is not a trade export subsidy that would lead… Continue reading The Border Adjustment Tax (BAT) is really GREAT!