Hate to say we told you so, but this inflation train is moving into high gear and will remain strong throughout 2022, particularly as higher home rental prices start to flow through the Fed's home rental price surveys. Our view is that the Fed will be forced to accelerate its tapering effort to perhaps conclude … Continue reading Cash Rich Stocks & Other Ideas To Hedge Inflation
The Atlanta Fed updated its model for Real GDP ("GDPNow"). The Atlanta Fed's 3.2% Real GDP estimate as of today is down from 3.7% as of September 21st. We have previously written that real GDP growth may very well be zero percent or even negative as we believe the Federal Reserve underestimates true price inflation … Continue reading Real GDP Growth Remains Muted
We critique Fed Chairman Powell's recent FOMC YouTube clip comments (video below) by time stamp. 0:07 - The Fed continues to purchase Treasuries ($80 billion per month) and MBS ($40 billion per month), thereby artificially suppressing interest rates while inflating the money supply. The Fed's actions - increasing the money supply - are solely responsible … Continue reading A Fed Critique By Time Stamp
The Atlanta Fed's GDPNow estimate of 3.6% real GDP for Q3, down from 3.7% a week earlier provides the Fed with the narrative necessary to not taper MBS asset purchases (currently approximately $40 billion per month), nor Treasury purchases (approximately $80 billion per month). Investors ought to stick to quality names. In the face of … Continue reading Muted Real GDP Provides The Fed With Excuse Not To Taper. Stick To Quality.
Amidst the talk of the Fed potentially tightening monetary policy in 2023 or even next year, the Fed expanded its Balance Sheet at its fastest pace since March 17th of this year, growing assets 1.4% from the week prior. This narrative of the Fed potentially becoming more hawkish needs to be put into perspective. With … Continue reading The Fed Expanded Its Balance Sheet Amidst Tightening Chatter
The U.S. Bureau of Labor Statistics ("BLS"), publishes the Labor Participation Rate each month. The Labor Participation Rate accurately reflects the state of labor in the United States. The same government agency also publishes the Unemployment Rate each month (due Friday June 4th). We view the latter as a Government marketing metric as it significantly … Continue reading Labor Participation Outlook: June 2021Premium