The annual holiday gathering for our company took place over the weekend at Clearman’s Steak ‘n Stein Inn. As the President and Founder, I felt compelled to share some reflections. Below is an excerpt from my musings, including an important announcement…
As we look around, it’s clear that the Christmas season is upon us. Some have been on the naughty list, while others have been nice; many have danced between the two.
Tonight, we come together not only to celebrate but also to reflect. This year has brought its share of triumphs and challenges. For the ninth consecutive year, however, our modest publishing venture found itself on the downside of success. Yet, we continue to persevere.
Success, in strictly business terms, is often measured by profits and losses. However, the true worth of an endeavor can’t always be quantified in monetary terms alone. We must consider the immense satisfaction we gain from our efforts and the inspiration that comes from creating something new.
Furthermore, the upcoming year, 2016, seems poised to transition our business from the shadows of failure into the brilliance of success. Continue reading
Federal Reserve Chair Janet Yellen has finally fulfilled her promise. On Wednesday, she announced an increase in the federal funds rate to a target range of 0.25 to 0.5 percent. Can you believe it?
It has been nearly a decade since the last rate hike, and after seven years of a zero interest rate policy (ZIRP), Yellen finally grew resolute enough to take this step. However, she tempered the announcement with a cautionary note, reassuring Wall Street that she was not rushing to cut off their liquidity. Here’s a brief excerpt from the FOMC statement…
“The Committee anticipates that economic conditions will evolve in a way that necessitates only gradual increases in the federal funds rate; it is likely to remain below longer-run levels for some time. The actual trajectory of the rate will depend on the economic outlook, as influenced by incoming data.”
Indeed, Wall Street celebrated the mention of “gradual” and promptly bid up stock prices, resulting in the DOW soaring by 224 points. Continue reading
On Wednesday, following the two-day Federal Open Market Committee meeting, Fed Chair Janet Yellen is expected to announce a move that hasn’t happened in nearly a decade: an increase in the federal funds rate.
A lot has transpired since June 29, 2006. For instance, exactly one year after the Fed’s last rate increase, the first-generation Apple iPhone was launched. The connection might be tenuous, but it highlights just how long it has been since the world has experienced a rising federal funds rate.
In terms of the economy, the last decade has not been without its challenges. Key events include the Great Recession, the downfall of Lehman Brothers, TARP, trillion-dollar budget deficits, a $3 trillion increase in the Fed’s balance sheet, seven years of a zero interest rate policy, and over $10 trillion added to the national debt.
Yet finally, after extensive deliberation and hesitation, the decision-makers at the Fed have summoned the courage to ever so slightly ease up on their aggressive monetary stance. Continue reading
Old records are being shattered, while new ones are set. For instance, on Monday, the People’s Bank of China announced a historic liquidation of foreign exchange reserves in November.
Specifically, China’s foreign exchange reserves dropped by $87.22 billion in November, totaling $3.438 trillion. This equates to a month-on-month sell-off of 2.5 percent. What could be causing such significant divestitures?
To begin with, China’s economic growth is slowing. Exports, once a key driver of this growth, fell by 6.9 percent year-on-year through October. Additionally, China is on track to report its slowest growth in the last 25 years.
This situation has a variety of implications, but for now, it indicates that those with wealth in China are looking to shift their assets offshore. Popular choices include U.S. real estate, stocks, and bonds.
According to estimates from U.S. Treasury data, over $500 billion has flown out of China between January and August this year. These massive capital outflows have ramped up, even in the face of increasingly strict capital controls in November. Continue reading
