British Vote for Brexit!

brexit-1British Vote for Brexit!

SURPRISE! Britain is leaving the European Union (EU) after 40 years of membership.

Last Thursday, almost three-fourths of voters in Britain – about 30 million people, according to the BBC – cast ballots to determine whether the United Kingdom would remain in the EU. By a slim margin, the British people opted for Brexit. Continue reading

Brexit Fallout: What Are They – Nuts?

keep-calm-and-carry-on-britainBREXIT FALLOUT: What Are They – Nuts?

Brexit is not exactly “new” news. Economists and media pundits have complained about the brokenness of the E.U. for the better part of the last decade. There are many challenges that have existed surrounding the European Union experiment since day one: Continue reading

The FED – BREXIT Combo

fist - punchThe world’s stock markets took it on the chin last week.

A one-two punch was delivered with the Federal Open Market Committee (FOMC) meeting leading and concerns Britain will leave the European Union following.

On Wednesday, the Federal Reserve confirmed what many had suspected. There would be no June rate hike. There was unexpected news, too. The Fed lowered its projections for U.S. growth to 2 percent through 2018. Barron’s reported the stance of various committee members had shifted from the previous meeting: Continue reading

Where Do Average Wages Stretch The Furthest

Stuff on a wallWHAT ARE YOUR WAGES WORTH? We’ve written about The Economist’s Big Mac Index, which is a lighthearted way to gauge whether countries’ currencies are at the correct levels – just compare the price of a hamburger in each country. At the start of the year, you could buy a Big Mac pretty cheaply in Russia ($1.53), Hong Kong ($2.48), or Taiwan ($2.08).

There are differences in how much things cost from state-to-state, too. Continue reading

Possibilities of Brexit

england - mermaid hotelIt seems that wether “The British are coming” or “The British are leaving,” people seek safety.

Last week, the interest rate on 10-year U.S. Treasuries dropped to levels last seen in 2013. Why, you may ask, would bond yields move lower when Federal Reserve policy is to push interest rates higher? The answer can be found across the pond with the question of Brexit.

On June 23, the United Kingdom, a.k.a. Britain, will vote on whether the country should remain in the European Union (EU) or leave. Continue reading

CEO Compensation is…

well dressed manCHIEF EXECUTIVE OFFICER COMPENSATION IS DOWN. NO, IT’S UP. YOU BETTER JUDGE FOR YOURSELF. The New York Times reported the 200 most-highly-paid CEOs in the United States collectively experienced a pay cut last year! CEOs’ average compensation – all CEO compensation added together and then divided by 200 – fell by 15 percent from 2014 to 2015. Continue reading

Employment & Probability of a Fed Rate Hike

NY SkylineStatistics means never having to say your certain…

and that was certainly true last week.

The employment report, which was released on Friday, was a bit short on jobs. Analysts had predicted employers would add about 162,000 new jobs during May, according to CNBC. Instead, a paltry 38,000 jobs added to payrolls. Continue reading

Required Minimum Distributions

elderly piano playerAS YOU APPROACH THREE SCORE YEARS AND TEN, DON’T FORGET ABOUT REQUIRED MINIMUM DISTRIBUTIONS.

Upon the occasion of his 70th birthday party, Mark Twain (a.k.a. Samuel Clemens) commented, “We have no permanent habits until we are forty. Then they begin to harden, presently they petrify…”

Whether Twain was right or not, the federal government demands most IRA owners develop a new habit at age 70. Continue reading

The FED Effects Sentiment

A Flashlight into the skyEveryone makes mistakes. Some people learn from them.

In GMO’s March 2016 white paper, James Montier and Philip Pilkington continued to explore the Federal Reserve’s influence – The FED Effects – on the stock market. It was a process they’d begun in 2015 as they sought “…to understand why our forecast for the S&P 500 had been too pessimistic over the last two decades or so.” Inspired by research done at the New York Federal Reserve, they found:

“…sometime around 1985 the market really started to react to FOMC [Federal Open Market Committee] days. Like the Fed economists, we found that for the past 30 or so years these announcement days have had a major, and increasing, impact on the stock market…In fact, FOMC days account for 25 percent of the total real returns we have witnessed since 1984!” Continue reading

Current Financial Quiz Trivia

hands on an iphoneEver Play Trivia Games?

A mobile trivia game maker recently assessed the playing habits of Americans and identified the most popular topics by state. As it turns out, Alabamians like college football questions, Alaskans like queries about U.S. states, Rhode Island natives prefer inquiries about the human body, and Wisconsinites love their Green Bay Packers.

We think markets, finance, and economics offer fine fodder for quiz trivia. Take this current events financial quiz and test your knowledge with questions about recent and pending market events: Continue reading