There has been considerable speculation that higher interest rates are inevitable since the surprise election victory of Donald Trump as U.S. President. The problem is that few economists are contemplating the consequences on the enormous amount of debt the Federal government has wracked up since interest rates were last at a historically more normal five percent rate. Consider that the Federal debt today is over $19.867 trillion. This makes it literally larger than the whole American economy, with a Debt to GDP ratio of 106 percent. In only the first 45 days of the 2017 fiscal year, another $294 billion… Read More

  After a long year of sitting on the sidelines, the Federal Reserve is likely to start raising interest rates as soon as next month. They found reason after reason to hold off throughout the majority of 2016. For March, they abstained from higher rates because the jobs report came out extremely weak. When June came around, they punted because of the market volatility and fears regarding the world economy. In July they were afraid of a Brexit referendum results induced contagion. By September, their excuse was that they still waited for an improvement in the U.S. jobs market. In… Read More

  The results of Trump’s election have caused a significantly different effect on the markets than analysts and economists predicted. Stocks did not crash and burn for more than a few hours. They have instead risen dramatically to mark new all time highs. Volatility demonstrated by the VIX has calmed to historically reasonable levels too. Despite this, many any have expressed concerns over President Elect Trump’s trade and economic policies. These will have a real impact on your personal investments going forward. Though Trump has significant successful business experience, he has never governed. Consider that Mr. Trump goes to Washington… Read More

  As voters grapple with the outcome of the election for the White House, the question remains will either of the candidates affect any much needed change? Or is it just an accident that the original party led by Thomas Jefferson was called the Democratic-Republican Party until its ill fated split in 1824 led to the creation of the two rival parties we know today? While the Democrats have a platform that strives to increase controversial social freedoms such as abortion and gay rights, they attempt to legislate their way to fewer economic freedoms as with higher taxes for the rich… Read More