How Will the Biden Administration’s China Policy Impact Markets?

The Obama and Trump administrations couldn’t have had a more different approach when it came to U.S. relations with China. As the Institute for China-America Studies (ICAS) explains, under the Obama administration, the United States favored a trade and investment approach when dealing with China, while the Trump administration had a national security focus. The … Continue reading “How Will the Biden Administration’s China Policy Impact Markets?”

How Will the Biden Administration Influence the Federal Reserve?

With the nation on the precipice of a transition of administrations on Jan. 20, 2021, there will need to be many roles filled both in and out of the White House. With the potential for Janet Yellen to replace Steven Mnuchin as the next treasury secretary, there is much speculation about how the Federal Reserve … Continue reading “How Will the Biden Administration Influence the Federal Reserve?”

How Would a Second Stimulus Check Impact Markets?

The $1,200 stimulus check sent out to individuals had mixed impacts on our economy, based on academic research, including by the University of California-Davis. For recipients with $3,000 or more in their bank accounts, there was no positive impact on the economy. However, for recipients with bank account balances up to $500, they spent 44.5 … Continue reading “How Would a Second Stimulus Check Impact Markets?”

Examining Fed’s New Targeted Inflation Policy

Looking back to 2012, the Federal Open Market Committee (FOMC) – a collaboration of the 12 regional Fed banks and the Federal Reserve Governors in Washington – came together and published a Statement on Longer-Run Goals and Monetary Policy Strategy. This officially rang in the FOMC’s public commitment to maintain inflation at 2 percent. It … Continue reading “Examining Fed’s New Targeted Inflation Policy”

How Will Monetary Policy Impact Markets Going Forward?

With gold hitting $2,000 an ounce in recent days, coupled with the Federal Reserve’s monetary policy creating a lot of liquidity, how will markets perform for the rest of 2020 and beyond? Based on a reading from the Federal Reserve’s minutes from its July 28 to July 29 meeting, the Fed remarked that the ongoing … Continue reading “How Will Monetary Policy Impact Markets Going Forward?”

How Likely Would a Second Coronavirus Wave Negatively Impact the Stock Market?

As Johns Hopkins University of Medicine’s Coronavirus Resource Center revealed a recent increase of coronavirus cases in the Southern and Southwestern United States, the VIX ticked up. With fears of the outbreak curve not flattening, how will this impact markets? The Volatility Index (VIX) was established by the Chicago Board Options Exchange in 1993 to … Continue reading “How Likely Would a Second Coronavirus Wave Negatively Impact the Stock Market?”

Are Dividends Becoming a Luxury During the Coronavirus Pandemic?

According to the futures market, Chicago Mercantile Exchange contracts are forecasting a drop of 27 percent in dividends over 24 months for the S&P 500 index. Dividends are projected to fall to $42.05 in 2021, a drop from 2020’s dividend of $47.55 and 2019’s high of $58.24. Looking forward to 2026, according to CME’s futures … Continue reading “Are Dividends Becoming a Luxury During the Coronavirus Pandemic?”

How Will U.S. Employment Figures, Coronavirus Impact Job Markets?

With the CARES Act (Coronavirus Aid, Relief and Economic Security) signed into law by President Trump on March 27, this set into motion major initiatives by the U.S. government in response to the coronavirus’ economic impact. This Act provides $2 trillion in financial aid to the nation, in big part to soften the impact of … Continue reading “How Will U.S. Employment Figures, Coronavirus Impact Job Markets?”

Understanding the Oil War between Russia and Saudi Arabia

Over the past six years, domestic crude oil has experienced a volatile ride. 2014 saw the emergence of American shale as producers were attracted to the $114 price levels. However, in 2016 the price for a barrel eventually fell to $27 as a global supply glut developed. 2016 also saw Russia and Saudi Arabia form … Continue reading “Understanding the Oil War between Russia and Saudi Arabia”

 
 
 
 
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