Trump is poised to implement a $60 billion annual tariff on China: The Hill
A potential government shutdown arises as Congress deliberates a massive spending package: CNN
Will the upcoming US-South Korea military exercises provoke North Korea? Bloomberg
The decisions made by China’s new central bank chief will have global implications: NY Times
Foreign ownership of US corporate bonds reaches a historic 40%: Moody’s Analytics
Germany’s central bank forecasts robust economic growth will persist: MNI
Fed funds futures indicate a 94% chance of a rate hike on Wednesday: CME
In the United States, real estate investment trusts (REITs) have experienced a second consecutive week of gains, outperforming other major asset classes based on a variety of exchange-traded products.
Continue reading
Russian President Putin easily secures re-election for a new six-year term: Bloomberg
China’s new central bank governor is viewed as a sign of continuity in policy: BBC
A North Korean official will engage in unofficial discussions in Finland with representatives from South Korea and the United States: WSJ
Bank of England’s Carney: Cryptocurrencies may pose a risk to the financial system: Bloomberg
A massive spending bill is on the agenda for Congress this week: WSJ
The GOP pushes for an additional round of tax cuts: The Hill
US industrial output increased by 1.1% in February, reaching the highest level in four months: Reuters
Consumer sentiment in the US has risen to a 14-year high in March: U. of Michigan
Job openings in the US reached a record high in January: Reuters
By Edward Yardeni
Q&A with the author via Barron’s
Barron’s: Are we heading toward a trade war that could disrupt the markets?
Yardeni: The president is unpredictable, making the stock market’s response difficult to foresee. In the ’90s, bond vigilantes kept Washington in check regarding inflation. Currently, we observe the influence of the Dow vigilantes; the stock market is the main indicator Trump pays attention to. Should it continue to decline, he may realize that imposing tariffs isn’t the best course of action.
Continue reading
2018 has been a turbulent year for US stock markets, with technology shares standing out as a strong performer. This sector has significantly outshined both the overall market and other major sectors on a year-to-date basis, as evidenced by a selection of ETF proxies.
Continue reading
Special counsel Mueller has issued a subpoena to the Trump Organization regarding Russia: LA Times
The White House denies rumors that Trump will dismiss his national security adviser: Bloomberg
The UK, US, and Germany criticize Russia for a chemical attack in the UK: WaPo
The US implements sanctions on Russia for meddling in the elections: Reuters
Saudi Arabia expresses the desire for nuclear weapons if Iran acquires them: CNN
The White House is preparing tariffs and investment restrictions on China: NY Times
Jobless claims in the US decline to 226,000, nearly the lowest in 50 years: MarketWatch
Regional Fed manufacturing indexes indicate ongoing job growth: 24/7 Wall St
US import prices rose more than anticipated in February: Reuters
Homebuilder confidence has decreased in March due to concerns over meeting demand: CNBC
Federal student loans have become the largest asset in US financial accounts: dshort.com
Recent months have seen sluggish consumer spending, leading some analysts to predict potential challenges for the economy later this year. However, despite the noise in monthly data, a positive outlook for retail sales emerges. While the growth rate has slowed, year-over-year comparisons remain favorable.
Continue reading
Conor Lamb, a maverick Democrat, claims victory in Pennsylvania’s special election: NY Times
The Senate approves a bill to roll back Dodd-Frank Wall Street reforms: The Hill
Trump appoints Larry Kudlow as the new White House economic adviser: CNBC
Kudlow advocates for a strong dollar and a firm stance on China: Bloomberg
US retail sales fell for the third consecutive month in February: Bloomberg
US producer price inflation edged up slightly more than anticipated in February: Reuters
Business inventories in the US increased sharply in January as sales declined: Reuters
Businesses’ inflation expectations for the upcoming year rise to 2.1%: Atlanta Fed
The 10-year to 2-year Treasury yield spread has fallen to 55 basis points, nearing its lowest level since 2008.
The rationale behind maintaining a diversified portfolio across various markets and asset classes is founded on the expectation that return correlations will typically remain below 1.0 (which denotes perfect positive correlation). By holding assets that behave independently, investors can enjoy the advantages of diversification, often regarded as the only truly free lunch in investing. Fortunately, correlations for the major asset classes are generally below 1.0. However, while some variations occur, consistently low and negative correlations are rare.
Continue reading
The outcome of the special House election in Pennsylvania remains too close to call: The Hill
Trump has dismissed Secretary of State Tillerson, appointing the CIA director in his place: LA Times
The jobless rate is projected to drop to 3% unless there are changes in Fed policy: Bloomberg
Here are five key points to watch in today’s US retail sales report: MNI
The OECD reports global growth is on track for a robust trend in 2018 and 2019: RTT
Inflation in the US slowed in February after being high in January: Reuters
Small business optimism in the US has surged to its highest level in over 30 years: Bloomberg
Do political compromises supporting Merkel pose a risk to Germany’s economic boom? NY Times
Central banks are revisiting their strategies to achieve elusive inflation targets: Bloomberg
