Its the (REAL, not the financial) economy, stupid!
The Fed is relying on the wealth effect. It can't directly bring down unemployment (i.e., part of the "real" economy), so it is focusing on the areas that it can affect, the financial economy and asset prices. Since both PCE and Core CPI inflation measures have been fairly low and are unlikely to become uncomfortably high in the near term due to the slack labor market, low capacity utilization and stagnant incomes, the Fed is again taking aim at asset prices.
Put Your Money Where Your Mouth is: Polls versus Prediction Markets in Predicting Election Results
Did you hear? There's an election coming. Just kidding. I'm sure that, by now, most readers feel as if theyve been in a pinball machine, being bombarded from side to side with rhetoric from both political aisles as well as their PACs and the media. Today, we look at the current odds as they stand in two markets.
Dividend Focused ETFs Don't Offer a Free Lunch, but They Let You Snack along the Way
There is no free lunch in investing! These words ring true, on average, over time for most investors. After all, investing is a trade off between growth and price as well as risk and return. The higher the expected future growth of a stock, the more likely it will be that investors have to pay a higher price (P/E) to get a piece of that future growth.