Article Index
Inflation Rate

In the first four months of this year, January to April, prices in the U.S. declined by 0.2%. But this shouldn’t be a reason to jump to the conclusion that deflation will prevail for the U.S. economy. (Source: Bureau of Labor Statistics, last accessed May 31, 2015.) Probability…

On Tuesday June 2, 2015, Eurostat, the European Union’s statistics office, released the eurozone area’s inflation data for May, which is at an annualized rate of 0.3%. (Source: Eurostat, June 2, 2015.) All Components Increased Except for Energy The positive 0.3% inflation in May is an improvement from…

My colleague Robert Appel (BA, BBL, LLB) issued a research paper to the subscribers of one of his financial advisories earlier this week. I thought it important that all my readers be aware of and understand the crux of what Robert is saying about our current economic situation…

The Bureau of Labor Statistics (BLS) reports inflation in the U.S. economy increased by 0.1% in February from the previous month. (Source: Bureau of Labor Statistics, March 18, 2014.) As usual, these numbers have again brought up the theory of deflation—a period when general prices decline. Reasons for…

Following a weak second quarter, the Dow Jones Industrial and S&P 500 indices are now in positive territory for the first time since the end of the first quarter on the backs of a positive July and August. So far, August has proven strong for technology, growth, and…

The stock market is ticking higher in the face of continued weak economic news, and it’s mostly due to the good corporate profits we’re getting. For the most part, we’re so far seeing good corporate profits, because expectations were already reduced. Some companies are slightly reducing their outlooks…

In recent history, without dividends, stock market investors would generally be losing money. And this doesn’t include losses relative to the inflation rate. It’s been such a difficult stock market for the last decade, and the extreme volatility serves to illustrate just how risky equity securities can be.…

The stock market is behaving extremely well considering the huge amount of investment risk in the global marketplace. There is, however, no other place for investors to put their money and be able to generate income (dividends) that beats the inflation rate. All assets are risky: real estate,…

Two decades ago, everyone was making money from the stock market. There was a boom, and some of the best stocks were in the technology sector, mostly due to the proliferation of the Internet. You didn’t even need to own the best stocks; just owning the index was…

Unless we get a major shock like war or something related to the sovereign debt crisis in Europe, I don’t think the stock market is going to experience a lot of further downside. Stock prices might drift and then trade range-bound for a couple more months, but stock…

As expected, there have been a lot of dividends increases from big, brand-name companies with excess cash on their books. New business investment is somewhat lagging given all the risks in the marketplace, so it’s much easier for companies to increase their dividends and/or initiate new stock market…

We’re getting into the heart of first-quarter earnings season and the stock market to me seems appropriately valued. But, while corporate earnings are decent, no brand-name companies are hitting their numbers out of the park. And this begs the question; how can the stock market advance? My answer…

For some time I have been saying that those people who were prudent, who worked hard all their lives and saved their money, are being punished by historically low interest rates, which are below the inflation rate. Clearly, artificially low interest rates below the inflation rate help those…

Because the Federal Reserve created an environment of artificially low interest rates, investors both large and small are craving income. You can’t get any real return from cash and the opportunities in bonds just barely cover the inflation rate and have long durations. Real estate investment trusts (REITs)…

While the U.S. economy is apparently improving (at least that’s what the media has been telling us), there are more municipalities defaulting on bond payments and facing widening budget deficits. Moody’s Investors Services just released a study on the municipal bond market that showed that, for all of…

There is plenty of rejoicing on Wall Street as traders celebrate the third anniversary of the beginning of the current bull market rally with heavy buying on Tuesday. The Dow Jones Industrials surged 218 points to above the stubborn 13,000-point level, while the NASDAQ blew above 3,000 with…

The American Institute for Economic Research (AIER), a not-for-profit research group, believes that the Consumer Price Index (CPI)—as measured by the government—does not reflect the true inflation rate in this country. The AIER believes that the true cost of living should include everyday items that consumers must spend…

Investors are excited about the fact that the Dow Jones Industrial Average has touched 13,000—a four-year high—as it rides the bear market rally higher. Let’s take a step back, dear reader, and explore the reasons to justify this current stock market rally and growing bullish investor sentiment. Let’s…