The first estimate showed that the US economy contracted again in the second quarter of this year. That marked a second consecutive decline in real expenditure growth. Generally, the economy is said to enter a recession when GDP falls in back-to-back quarters. However, it's a bit more complicated than that, as the National Bureau of Economic Research (NBER) weighs many economic factors before officially dating a recession's start date.
Reflexivity
Opportunities in View
Gritty Travels
The Basis of the Rate Increases
The Forward Price of Economics
Macro Risk Triangulation
Gas in the Tank
Finding Market Clues
Big media has refocused coverage on the new coronavirus variant. Research in the pharmaceutical industry is already underway to obtain the gene sequence of Omicron. As a result, vaccines and booster shots will likely soon come with an antibody to act as a line of defense against the variant. Still, investors sold the news as renewed shutdowns and restrictions became prominent concerns. However, President Biden was quick to discourage shutdowns as an acceptable policy response to Omicron.
Aggregate Demand Is Hot
Corners of the Marketplace
Marketplace valuations have reached new heights, and interest rates have revisited lows. So naturally, it is normal to experience more uneasiness and weariness around the limits of financial returns, creating heightened awareness in all those involved. Indeed, anything vaguely connected with the delta-variant, inflation, credit defaults, government deadlocks, and challenging labor markets can captivate the public right now.
Money & Politics
The Non-Invisible Hand
Change is Speculative
Looking at Rotations with an Economic Lens
Unpacking Inflation
SPAC Impact on Investing
Expansionary Links
Increasing consumption and investment are trends when confidence is usually strong, and we have observed a positive sentiment shift recently in these areas. However, a shift to increased currency demand will put upward pressure on interest rates when the supply of that currency is fixed. Therefore, the latest interest rate increases may actually serve as an expansionary sign for the economy and a monetary system that is operating as intended.