Election Results May Affect Rates – Fixed Income Update

Interest rates gravitated slightly higher in October, driven by the anticipation of eventual inflation and growing federal debt levels. The yield on the 10-year Treasury bond rose from 0.69% in September to 0.88% at the end of October. The rise in yields was the largest increase since June. Election results are expected to determine the direction of interest rates over …

Uncertainty From Presidential Race Drove Volatility In October

U.S. equities zigzagged throughout October as uncertainty surrounding the election and a second stimulus package instilled volatility. Global developed market equities declined in October as earnings became more of a concern among companies throughout various industries. In the U.S., the S&P 500 Index dropped the most ever for the week leading up to a presidential election. Emerging market equities faired …

Macro Economic Overview – November 2020

With the election over, a lingering uncertainty has been removed as expectations of how fiscal policy and stimulus programs funded by government debt may evolve. Some economists and market analysts project eventual higher taxes along with an expanding fiscal deficit. The delay in getting a second stimulus bill through Congress hindered markets throughout October due to indecisiveness among politicians. Millions …

Millennials Lagging Relative To Their Parents & Grandparents

The Federal Reserve tracks and compiles data on all of the generational members which include the Silent, Baby Boomer, Gen X, and Millennials. The data is revealing that the millennial generation, born between 1981 to 1996, are lacking in their finances. Fed data for the four generations shows that millennials have already accumulated nearly as much debt as Boomers and …

Pandemic Shifts What Energy We Are Using – Consumer Energy Usage

COVID-19 has upended and completely altered the way we use energy. What has been conventional wisdom and consistent for decades has all changed in a matter of months. For the first time since 1960, U.S. consumers have spent more on electricity than on gasoline, representing a dramatic shift in energy usage. Reasons for the shift are attributed to an enormous …

How Lower Credit Limits Affect Your Credit Score Due To The Pandemic

Millions of Americans are having their credit scores adversely affected by the pandemic, as banks and finance companies modify the extension of credit. As consumers struggle to retain a fragile balance between joblessness, lower wages, and household expenses, lenders are cutting credit limits, lines of credit, and credit card charge limits. The result has been a reduction in scores for …

Uncertainty From Presidential Race Drove Volatility In October

U.S. equities zigzagged throughout October as uncertainty surrounding the election and a second stimulus package instilled volatility. Global developed market equities declined in October as earnings became more of a concern among companies throughout various industries. In the U.S., the S&P 500 Index dropped the most ever for the week leading up to a presidential election. Emerging market equities faired …

The Reemergence of Stagflation – Economic Trends

Recent government data that tracks inflation, known as the Consumer Price Index (CPI), has been rising steadily since the onset of the pandemic in March. Economists believe that the rise can be construed as either a rebounding economy or as a general rise in overall prices. The concern is that the current economic environment continues to display signs of dismal …

International Migration Plummets – International Dynamics

International migration plunged 46% over the past year as the pandemic has hindered mobility for millions of migrant workers worldwide. The Organization for Economic Cooperation and Development (OECD) tracks the issuance of new visas and permits by the organization’s 37 member countries, including the United States. The OECD found that new visas and permits fell by 46% in the first …

Macro Economic Overview – October 2020

Worries regarding a second wave of infections heading into the fall, election uncertainties, and wavering economic indicators contributed to a dubious September. Equities paused from their upward trajectory in September, with technology stocks repelling from their highs. Uncertainty surrounding vaccine deployment and the election are expected to influence market momentum and investor confidence. Election results will help determine the direction …