We are writing this update in response to the events that have shaken the banking world over the last number of days which began with the failure and FDIC takeover of SVB Financial (parent company of Silicon Valley Bank) and has grown to impact other banks including Signature Bank and...
Geopolitics: A Most Unfortunate Anniversary
This Friday, the 24th of February, marks the one-year anniversary of the start of the largest land war in Europe since World War II. We wrote two notes about the situation in 2022, one before the invasion and one immediately afterward. However, the conflict has only intensified since that time...
Bond Basics: Inflation Update
Today’s CPI report showed a year-over-year increase of 6.4% for the all-items index, before seasonal adjustment. This comes in slightly higher than market expectations, but it is still a decline from last month (6.5% in December) and continues the trend downward since the peak in June. However, the shelter subcomponent...
Debt Ceiling Update – Knife fight?
There is a potential fight brewing in this country, but despite the title of this note, not one that will involve any physical violence (hopefully). The US debt ceiling needs to be raised in order for our country to meet its ongoing financial obligations. While this could be accomplished quite...
Bond Basics: Brokered CDs
Previous editions of Bond Basics served as an introduction or re-introduction to a market that may have been ignored more recently due to the extended period of historically low interest rates. While acknowledging the rapid rise in rates was painful in a variety of ways, we concluded with reasons for...
Nexus – Brave New World?
Sense making in today’s world is a difficult task. Whether you are trying to make sense of markets, politics, or just life in general, we are awash in a world full of data and differing “expert” opinions. Social media and targeted advertising can add to the confusion, nudging us this...
2023 Inflation Adjustments: What Changes is the IRS Making?
For more than a year now, Americans have been squeezed by the rising costs associated with high inflation. The effects of persistent volatility and declining purchasing power are being felt at the grocery store, the gas pump, and in investors’ portfolios. According to the Bureau of Labor Statistics, the consumer...
Inflation Update: CPI Report Higher than Expected
Higher than expected inflation data reported for August surprised the market, showing that lower energy prices have not been enough to offset the impact of higher core prices. A 75-basis point rate increase appears to be fully priced into the market ahead of the September 21st Federal Reserve meeting. The...