According to Wikipedia, the Phillips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation. Theoretically, reductions in the unemployment rate should cause prospective employers to offer higher wages which, under some circumstances, can have an inflationary effect. Clearly, the Fed looks at a wide range of metrics in determining … Continued
The UAW and the Detroit based auto manufacturers are currently in the process of negotiating a new four year agreement. UAW members generally resent the two tier wage system and long-time employees feel that they have been left behind as the industry recovers from the bailout/bankruptcy era. It should be noted that UAW auto workers … Continued
I was recently having a conversation about the capital markets with an attorney friend (non-client) who is exceptionally risk averse. Plain and simple, he intimated that he just could not stomach the constant ups and downs of stock prices and the potential for loss of principal. He is not unusual in this respect. Many, if not … Continued
Here we go again. According to Black Knight Financial Services, cash-out residential refinances jumped 68% in the second quarter from a year ago, the highest volume of this type of refinancing in five years. As home values increase, homeowners are seeing paper increases in equity, which, when combined with unusually low mortgage rates, creates an … Continued
My colleague Walter Kirchberger wrote a very compelling blog on the impact of competent leadership for an organization and cited one of the two premiere college football teams in the state of Michigan in his comments. His commingling of sports and business when speaking of leadership was not unique. In many business management books, pages … Continued
While athletics and business are not completely synonymous, both tend to require effective leadership. Witness the University of Michigan football team. A once great power had clearly fallen on hard times and the prospects for the 2015 season were not generally considered to be much better. At this writing the team is ranked 12th or … Continued
Over the last several months we have seen substantial short term volatility in the major market averages, but on a year-to-date basis, very little net change. Commodity prices have been under pressure, interest rates have remained at historically low levels and unemployment data, while appearing to be positive, has not resulted in any significant increase … Continued
Speculation regarding the Fed’s next meeting and the possibility of higher interest rates remains at the forefront of financial news reporting. As a reminder, the Fed’s three key objectives are: maximum employment, stable prices and moderate long-term interest rates. The first two objectives are often referred to as the Fed’s dual mandate. Currently, there is … Continued
Copyright © 2022 - Sigma Investment Counselors