Seymour Zises, President and co-founder of Family Management, writes bi-monthly opinions on issues and observations of relevance to clients and investors.
After anemic growth in the economy during the past few years, it looks like it may be weakening further according to data released on March 25th. The economic figures showed a drop in business spending and investment. Further, orders for durable goods such as computers, washing machines and lawn mowers dropped 1.4% in February from a month earlier. Not unnoticed in this data, is that the weather may have played a big role in the weakness.
The New England Patriots deflate and the European Central Bank inflates.
There has been so much news about deflation, inflation, reflation and the many different possible outcomes of developed nations easing of monetary policy. Very little has been discussed about the biggest revolution in economics; that is, Techflation. What is Techflation you may ask? It is the deflation caused by technology and the increase of low paying jobs that comes as a result.
When the European Central Bank published its report on the soundness of European banks, most Europeans were relieved to see that all but 25 of their 130 banks were considered sound. However, what was not highlighted was the way these banks valued their assets, including loans and derivatives.
Make no mistake about it, new war lords have emerged, and a new world order is taking shape. Whether ISIS, Iran or Russia wind up as America’s number one nemesis, a resurgence in military spending appears inevitable.
The U.S. was named the most obese country in the world. That cannot be surprising to any of us….look at our culture. Although, it is believed that Mexico has taken the lead in last few weeks, burgers, fries, chicken nuggets, ice cream…
