Tag: Wage

US dollar chart plunged after FOMC announcement on July 26, 2017.

FOMC Announcement Pushed US Dollar Down Big Time

26/07/2017

The dollar did a big drop today after the FOMC announcement left rates unchanged. The Federal Reserve said the reduction of the balance sheet will begin relatively soon. I think relatively soon means September 2017. The Fed seemed to indicate that “gradual” policy tightening will continue. The Federal Reserve will begin winding down the stimulus Read More »

Janet Yellen Testimony Economy Strong Enough For Rate Hikes

12/07/2017

The US economy is healthy enough to absorb gradual rate increases and the reduction of the Federal Reserve’s balance sheet, Fed Chair Janet Yellen testimony before Congress on July 12, 2017. Federal Reserve Chair Janet Yellen told Congress on Wednesday that the bank hopes to keep raising a key interest rate and also intends to Read More »

Jolts Job Openings Down But Hiring Up

11/07/2017

The JOLTS Job Openings report showed U.S. companies posted fewer job openings in May but hiring picked up and people are quitting their jobs — both bullish signs for the economy. New government statistics show American companies have made progress filling their record number of job openings, as hiring rose in May while the amount Read More »

Machines and Computer AI Are Not Going To Take All Our Jobs, Here’s Why

3/07/2017

A vigorous debate is going on between economists, stock traders, and investors on if computer A.I. and automation will take all our jobs and destroy the economy. I have been studying this issue for more than a year and I’m ready to give you my final opinion on the subject. Please take a moment to Read More »

Stock Market at All time Highs! Are We In a Giant BUBBLE?

10/12/2016

With the stock market hitting all-time highs, everybody wants to know if we are in a giant bubble. You can’t trade and make money if you’re not in the market. If the fear that we are in a bubble is keeping you out, then you’re not making money. The honey badger doesn’t care. The honey Read More »

What The Trump Win Means For Multinational Corporations

13/11/2016

I predict that a Trump win means down for the economy at first, then upward as the US consumer strengthens from domestic job growth. The down first move in the economy will come from inefficiencies caused by forcing multinational corporations to bring domestic production facilities back to the US or face steep tariffs. Several traders Read More »

Here Comes Supply-Side Economics and the Laffer Curve

10/11/2016

Increases in government regulation, taxes, environmental regulations, and ObamaCare on businesses, shifted the aggregate supply (AS) curve inward and thus reduced aggregate demand (AD). With the explosion higher in the cost of doing business, businesses hired fewer workers. In fact, many small businesses reduced the size of their workforce in response to ObamaCare. Less hiring Read More »

What Further Evidence the Fed Needs To Hike In December 2016

2/11/2016

The Federal Reserve held short-term interest rates steady as traders expected. In the Fed’s postmeeting policy statement, it said it only needed “some further evidence” of economic progress before moving forward with a rate hike. What exactly is the further evidence that the Fed needs? To answer that, you have to know about what happened Read More »

Frictional Unemployment and The Employment Situation Report

2/11/2016

As traders, we track the monthly Employment Situation report closely. The market often does a short-term move on the first Friday of every month when the Employment Situation report for the previous month is released. Do you understand what the Employment report is showing? I bet many traders do not. As traders, we have to Read More »

A supply and demand chart showing equilibrium at the center axis of where supply and demand cross.

The Aggregate Supply-Aggregate Demand Model

17/10/2016

Looking at the aggregate supply (AS), aggregate demand (AD) model, we can see where the US economy is currently at in the economic cycle. It is critical that traders and investors understand where we are at in the business cycle so as to be in on the right side of the trade. Timing Bull/Bear cycles Read More »