We've updated this series to include yesterday's release of the Consumer Price Index as the deflator and the October monthly update. The latest hypothetical real (inflation-adjusted) annual earnings are at $37,441, down 12.8% from 44 years ago.
Growth in the country's corporate debt load has finally leveled off this year as financial conditions and regulatory oversight tighten. That's good. But rebounding returns on incremental assets and common equity are even better.
Today's report on Industrial Production for October shows a 0.9% increase month-over-month, which was better than the Investing.com consensus of 0.5%. Industrial Production peaked in November 2014, only one point higher than its pre-recession peak in November 2007. The year-over-year change is 2.88 percent, up from last month's YoY increase.
The National Association of Home Builders (NAHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single-family home sales. It is a diffusion index, which means that a reading above 50 indicates a favorable outlook on home sales; below 50 indicates a negative outlook. The latest reading of 70, up 2 from last month's number and at an eight-month high. Investing.com had a forecast of 68.
As many traditional credit sectors begin to approach full valuations, credit investors may want to look in new directions for attractive returns with manageable downside risk. In diversified credit portfolios today, de-risking and building liquidity are important, but we also see attractive relative value opportunities in a couple of (sometimes overlooked) sectors.
Tax reform. Interest-rate hikes. Regulatory questions. Inflation. There’s always a reason to put off making changes to your company’s defined contribution (DC) plan. But some improvements will be good for your plan and participants no matter what happens.
From time to time we illustrate our analysis of highly innovative companies in a Knowledge Leader spotlight. Today we look at Microchip Technology Inc. (MCHP), a highly innovative semiconductor manufacturer that produces programmable microcontroller products used in autos, computing and lighting, among many other applications.
The latest Manufacturing Index came in at 22.7, down from last month's 27.9 and has been positive for sixteen consecutive months. The 3-month moving average came in at24.8, up from 23.5 last month. Since this is a diffusion index, negative readings indicate contraction, positive ones indicate expansion. The Six-Month Outlook came in at 50.1, an increase from the previous month's 46.4. Today's 22.7 headline number came in below the 25.0 forecast at Investing.com.
Today's seasonally adjusted 439K new claims, up 10K from last week's 239K, was worse than the Investing.com forecast of 235K. From the release: "Claims taking procedures continue to be severely disrupted in the Virgin Islands. The ability to take claims has improved in Puerto Rico and they are now processing backlogged claims."
In the second of a three-part series on principles of the low-return imperative, we zero in on the value of efficient implementation—and identify three ways it may help achieve desired outcomes.