Salient to Investors: Matthew C. Klein writes: GDP has been expanding at the same rate in half1 as it has since mid-2010, showing that Fed stimulus has offset fiscal tightening. However, growth is still too anemic to return to anything resembling full employment for several more years, even under the most optimistic assumptions.
READ MORE... →Salient to Investors: Matthew C. Klein writes: The FRB of Chicago said it would take another 5 years to return to full employment at the June jobs pace, even with aggressive assumptions about aging, immigration and the birthrate that make the “employment gap” smaller than many believe. same day no fax
READ MORE... →Salient to Investors: Matthew C. Klein writes: The Wall Street Journal reports that well-to-do young Americans prefer to invest into “safe” luxury real estate rather than “risky” equities. The article could have been written in 2002 or 2003 before the housing bubble and bust. $100 invested at the market peak
READ MORE... →Salient to Investors: Matthew C. Klein writes: Glass-Steagall 2 would do nothing to protect us from the devastation we recently experienced. The belief that the 1933 Glass-Steagal Act made the financial system safe and promoted decades of prosperity and that the 2007 crisis would never have happened if G-S had
READ MORE... →Salient to Investors: Matthew C. Klein writes: Hedge Fund Research says the S&P 500 index with dividends reinvested beat the average hedge fund over the past decade. There are always periods when certain asset classes did better than others. E.g., gold from the middle of 2001 increased by more than 600
READ MORE... →Salient to Investors: Matthew C. Klein writes: Hedge funds et al can now solicit the public for capital by advertising, a welcome development. It is easy to avoid scoundrels by sticking to index funds. Only the greedy get fleeced by offers that are too good to be true. Most finance
READ MORE... →Salient to Investors: Matthew C. Klein writes: The FRB of Chicago says it would take 4 more years of job gains at the current pace of 195,000 per month to jobs to return to full employment and close the gap that began opening at the end of 2007. The US is
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