Despite the chaos of the Trump administration, prices have reached the Fed’s target. The announced “tapering” is complicated because if the central bank is not careful rates could shoot up more than necessary.
Articles by Pablo Pardo
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Wall Street’s market is celebrating eight years of uninterrupted rises. The PER of the SP500 was 10.9 on March 9th 2009, and it is now 19.8, with the historic average at 15.6.
Be passive! That seems to be the key for successfully investing these days. Put your money in an ETF that targets a basket of stocks, or, even better, into an indexed fund and forget about the rest. It is a market trend that has been blessed by no other than Warren Buffet. In his last encyclical (otherwise known as, simply, Berkshire’s letter to shareholders), the Oracle of Omaha tells his flock
It doesn’t matter what Trump says: the manufacturing companies are facing hard times. The best example of this is the Dow Jones. If the index was composed today of the same stocks as in 2004, it would not reach 13,000 points.
Donald Trump is clearly interfering with corporate liberty, directly criticising on Twitter every investment the big companies make. But the question is that he functions by and for the cameras and hasn’t taken in what the rule of law is. So you can’t ask him to have respect for regulations and institutions. He will be sworn in today.
Trump and the republicans are already considering a fiscal amnesty which would repatriate – with a tax rate of 10% – the 2.5 billion dollars US companies have outside the country.
In the United States, there is absolutely no discussion about the independent nature of organisms like Florida’s State Board of Administration – SBA. In fact, its director Ash Williams defends an increase in public spending, which is anathema to the Republicans with the exception of President-elect Donald Trump. He also affirms the US and many other industrialised economies need a responsible fiscal policy.
The US economy is trapped by outdated infrastructure. The big paradox is that financing it today is easy because of the overabundance of liquidity in the market.
The big hope of political self-starters like Donald Trump are those voters without a university education, once members of the US middle-class, who accounted for 36% of the electorate in the last elections.
For the last four years, Jose Juan Ruiz has been chief economist at the Inter-American Development Bank (IDB), the largest multilateral development aid agency in the region, surpassing the World Bank. Despite the fact LatAm has suffered a massive shock, one of the biggest differences this time round compared to previous slowdowns is that the region has $600 billion of international reserves.