After another positive year of equity returns in 2021, the first quarter of 2022 saw negative returns in both equity and fixed income markets. While many economists were anticipating the challenges of high inflation and continued supply chain disruptions to begin easing in 2022, the Russian invasion of Ukraine exacerbated both market headwinds. Additionally, in…Read More
In January we published a blog titled, Now Can We Expect Some Inflation? As if on cue, inflation as measured by the Consumer Price Index (CPI) has increased steadily each month since. As shown below, the latest inflation reading measured 5.37%, well above the Federal Reserves stated target of 2%: Concerns about inflation are understandable…Read More
True confession: I almost failed economics in college. If all the concepts taught were around food items, like the Big Mac Index, perhaps I would have been more successful. Talk about a fun way to break down a complex topic like exchange rates. Today’s blog post takes a look…Read More
– Post-2008 interest rate compression engineered by global central banks have resulted in a massive accumulation of debt by both sovereign and corporate issuers.
– U.S. corporate (non-financial) bonds outstanding have grown by 63% to over $6.3 trillion just since 2011.
– U.S. government debt outstanding has ballooned by 148% to over $15.8 trillion since 2008.