It should come as no surprise that our politicians failed to compromise on a new bail-out package this week. It is symptomatic of a country that suffers from a great philosophical divide. The only entity that investors can truly believe in is the Fed. Keep the faith. Chairman Jerome Powell, in his Thursday press conference after the two-day Federal Open Market Committee meeting, said the path forward is “extraordinarily uncertain.” As such, our central bank will remain accommodative, he promised, which means the financial markets will continue to be supported going forward. Readers should remember that. Over the long term,…
Insights & Advice
Bill Schmick
How much are your children worth?
In the weeks ahead, the Center for Disease Control (CDC) wants your children to go back to school. They say it is necessary because children need schooling from a social, emotional, and behavioral health perspective. No one disputes that, so why are American parents balking at the idea? The short answer is that they are afraid for their kids. It doesn’t take a rocket scientist to understand that kids in a classroom are “super spreaders” of virus. Just think of what happens during the Flu season each fall and winter Despite assurances from the CDC that death rates among school-age…
Bail out blues
Investors have been giving Congress the benefit of the doubt—until now. A long-promised second tranche of fiscal stimulus was supposed to be passed by the end of the month. The clock is ticking, but the horse-trading has just begun. On August 1, the rent is due for millions of Americans. The sunset of the $600 in additional weekly unemployment benefits legislation, which amounts to almost 60% of their benefit, will have expired unless Congress acts. The GOP has dragged its feet for almost two months, hoping that the economy would bounce back, and relieve them of their responsibilities. The GOP…
The weakening dollar
Sometimes, investors are so focused on the trees that they miss the forest entirely. Take the U.S. dollar, for example. It has been declining at an alarming rate, yet no one seems to care. Today, investors are so occupied by a number of trees—earnings, stock prices, dividends, earnings results—that a weakening currency is almost an afterthought. Unfortunately, if the dollar continues to weaken, it could radically change your investment choices. Most readers, in general, believe a strong dollar reflects a strong economy. The fact that it makes our exports more expensive, and imports cheaper, is also true. A strong dollar,…