The Tariff Act of 1930 was a law that implemented protectionist trade policies in the United States.  The Act prompted retaliatory tariffs by many other countries.  It is important to note that the consensus view among economists is that the Act did not cause the Great Depression, but worsened it. Investors should note that tariffs … Continued

Week of December 2, 2024 Renewed “maximum pressure” is the strategy that Iran expects the Trump Administration to employ against its regime. To avoid “maximum pressure”, Iran pushed a depleted Hezbollah to negotiate a cease-fire deal with Israel and then Iran met with various European officials in Geneva to discuss their nuclear program, amongst other … Continued

Week of November 25, 2024 For fans of the gridiron, this is the week of The Game. Michigan versus Ohio State in Columbus. The week has always been met with much anticipation as the coaches prepare their teams. In a similar vein, President elect Trump is assembling his Cabinet “team” and developing political strategy. As … Continued

Generally, these have been the primary determinants in the acceptance of new, improved and/or innovative products and services.  In some cases, if the better is much better, cheaper is not necessarily the determining factor.  The smart phone comes to mind.  Current smart phones are so much better than historic landlines, that higher prices have not been a … Continued

Week of November 18, 2024 The winter holiday season is near, and that means Americans are gearing up to spend. A recent Gallup Poll suggests that Americans on average will spend over $1,000 on gifts this holiday season, a modest increase from last year. This bodes well for economic growth, as consumer spending makes up … Continued

Productivity is a measure of performance that compares the output of a product with the input, or resources required to produce it.  Economists see productivity as the key source of economic growth.  A country’s ability to improve its standard of living depends on its ability to raise its output per worker.  This does not mean … Continued

Week of November 11, 2024 Explosive rallies in global equity markets greeted the end of the US presidential election cycle last week. They were pronounced – either because of, or in spite of, the Republican sweep. Time will tell. Split government seems historically to have resulted in better policy. Our Signals remain unchanged. Bob Bilkie, … Continued

According to Wikipedia, smoke and mirrors is a classic technique in magical illusions that make an entity appear to hover in empty space.  More recently the phrase has entered common English use to refer to any proposal that, when examined closely, proves to be an illusion. Investors should be cautious when approached with mind blowing … Continued

Week of November 4, 2024 On November 3, early Sunday morning, the top two queries on Google search were “How do I vote” and “What time does the time change.”  Metaphorically, these two seem oddly related.  It leaves one pondering.  No change to our Signals. Bob Bilkie, CFA

The term “Lost Decade for Stocks” refers to the ten-year period from the end of 1999 to the end of 2009, when the S&P 500 generated an annualized total return of -0.9% over the period.  This was only the second time the market, as measured by the S&P 500, has had a negative return over … Continued

Week of October 28, 2024 After what seemed an indeterminate pause in the “what’s next in the Middle East”, Israel bombed selected military sites in Iran on October 26 as retaliation for similar strikes by Iran into Israel. The initial reports suggest this was a largely symbolic gesture. After what seemed an indeterminate continuation of meritless debate … Continued

Week of October 21, 2024 The US Department of Commerce will provide an estimate of Q3 2024 GDP growth on October 30. We expect a continuation of the low single digit growth numbers posted over the last four quarters. Inflation has also continued to moderate while the unemployment rate has held relatively steady. With no … Continued