Econ70

The economy goes through periods of higher and lower inflation and earnings. During these cycles different investments outperform, leading to changing asset allocations. When growth is good and inflation is low, debt and equity generally do well. When growth and…

At the height of the 2013 coal boom, the trading firm Glencore purchased mining firm Xtrata forming Glencore-Xtrata. The thought was combining low volatility Glencore with high volatility Xtrata, and in the process making a bigger firm, would improve results.…

While college students have borrowed over $1.2 trillion and seven million students are in default, more debt doesn’t appear to increase default rates. Of students that borrow less than $5,000, 34% default, those that borrow between $5,000 and $10,000 have…

Unless Speaker Boehner can raise the debt ceiling and fund the government through 2017 before he resigns on 10/31/15, the Fed may again delay raising rates. If these issues aren’t resolved, it will fall to presumed Speaker McCarthy to solve…

The Friday File: After two weeks, NFL teams are converting one-point conversions at a rate of 94.1%, down from 99.3% last year, due to a significant rule change making the kick 33 yards, not 20 yards. Last year, two-point conversions…

While inflation is well below the Fed’s 2% goal, according to Fed Chairwoman Yellen 80% of the shortfall is evenly split between low energy prices and the strengthening dollar, with the remainder split between labor market slack and weak commodity…

In 11/07, the number of full-time workers peaked at 121.9 million, while the number of part-time workers totaled 24.8 million, including 4.3 million part-timers who couldn’t find full-time work. Last month, the number of full-timers hit 122 million, finally surpassing…

Any hope about a near-term resurgence in the manufacturing sector should be put to rest. The most recent readings for industrial production and capacity utilization showed a decline, as have all three Federal Reserve manufacturing indices along the east coast.…

Median household income in 2014 was $53,657, down from $54,462 in 2013 and is down 9.3% from the all-time high of $57,843 in 1999. Median household income is now roughly where it was in 1989 when it surpassed $53,000 for…

The Friday File: Americans spend about $1 billion/year on nail polish. The most costly, Rouge Louboutin at $50 for less than half an ounce. Revenues across all 53,815 nail salons are $8.5 billion/year with the number of salons up from…