The Treasury General Account (TGA) could be empty by the middle of June or slightly earlier and all magical bookkeeping tricks may have been exhausted (these are all guestimates only). The TGA has 155B left and between now and the June 15th corp tax day,
The lower part of our featured chart shows the US 3-month versus 10-year yield curve (left side scale). When some economists are trying to forecast a recession, the relationship between funding rates and lending rates (the yield curve) is a major factor. When this yield
Following last week’s surprising US CPI report where the actual reported numbers were lower than even the most optimistic forecast, we expect members of the FOMC will recognize the need to soon slow the pace of rate hikes. What all this means is that there
This week COP27 takes place in Sharm El-Sheikh, Egypt. This annual event, the “Conference of the Parties” or “COP” brings together the governments which have signed the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol or the Paris Agreement. World leaders, ministers,
Yes. In general, the configuration of Congress relative to the White House has a meaningful impact on spending patterns, which has longer-term implications. The Trump tax cuts in 2018 had a meaningful impact on corporate profits for example. The way it’s looking today, a Biden
At 8:52am on Friday Oct 21, S&P e-mini futures were down about 1% and the US Dollar was very strong versus most currencies. Many have wondered for months what it would take for the FOMC to understand the strong US Dollar was a problem. Maybe
We think that Powell will do his best this week to regain credibility of the FOMC as an inflation fighter having fallen so far behind the curve earlier this year and last. Several FOMC members went out of their way since the minutes hit (Aug
The tragedy of war is difficult from a human toll perspective. I recall having tears in my eyes trying to give investment advice in the days and weeks following September 11, 2001. The lessons of past tragedies remind us to keep focus on your longer-term
It’s clear to us that despite best efforts and recognition climate change is a major issue for the world, the hurdles are high in terms of the developing world need for cheap energy (read coal). From our perspective, the logical transitionary energy source investment should
Probably not much is the answer. You should rarely adjust your long-term goals for short-term noise. However, to the extent that the NDP force the Liberals to move more to the left on tax increases (new revenues), it could matter for some that are overweight