With more disappointing economic news out of Japan and Germany, the United States continues to look like an island of prosperity in an ocean of slow global growth.
As economic and monetary conditions continue to diverge between the United States and the rest of the developed world, stocks are poised for continued strength.
Here’s an update on one of the most important debates happening at the Fed right now.
While the labor market is certainly improving, inflation expectations are still depressed thanks to a rallying dollar and stagnant wage growth. Meanwhile, emerging markets continue to borrow at record low interest rates as Europeans hoard savings.
As the Chinese government continues to “rebalance” their economy towards domestic consumption and investors demonstrate nervousness over a credit bubble, emerging Asian equities appear to offer attractive valuations.
Economic recovery remains slower in Europe than in the U.S., causing renewed discussion around the European Central Bank’s options to try and jumpstart the Eurozone economy.
As the Eurozone’s economic recovery stutters to a halt, investors are turning to the United States for growth.
Just in time to follow up on yesterday’s post regarding economic participation and the structural/cyclical debate in macroeconomics, a new report from the White House says about 33% of the decline in the labor-force participation rate is due to structural factors — “the factors beyond aging and cyclicality.” The Washington Post has two theories to […]
Basically, every macroeconomic debate these days boils down to: “Is this time different? Is this change structural (here to stay) or cyclical (will revert)?” For example, here is the chief economist of Trulia arguing that “homeownership among young adults is both on the rise and not too far off from where demographics say it should […]