Research & News
Weekly Geopolitical Report – Reflections on Nationalism: Part I (August 21, 2017)
by Bill O’Grady Over the last decade, the West has seen a series of tumultuous events. Of course, ten years ago the world was trying to cope with the Great Financial Crisis which raised fears of a repeat of the Great Depression. Although that outcome was avoided, deep underlying problems remain. Southern Europe faced a series… Read More »
Asset Allocation Weekly (August 18, 2017)
by Asset Allocation Committee A number of market commentators have suggested current conditions are similar to 1987. Complacency, shown by the low level of volatility and an elevated P/E, is rampant. On the other hand, there is no evidence a recession is looming and, although monetary policy is tightening, the Federal Reserve has been raising rates… Read More »
Weekly Geopolitical Report – The Qatar Situation: Part II (August 14, 2017)
by Bill O’Grady Last week, we discussed a short history of Qatar and its geopolitical imperatives. This week, we will analyze the events precipitating the blockade, the blockade itself, the GCC’s demands and the impact thus far on Qatar. We will examine how the situation has reached a stalemate and, as always, we will conclude with… Read More »
Asset Allocation Weekly (August 11, 2017)
by Asset Allocation Committee Although measuring “malaise” is more art than science, overall feelings of wellbeing or the lack thereof affect markets, politics, etc. One less common way to measure this is the ratio between discretionary spending compared to overall spending. Discretionary spending is defined as total spending less what is spent on food, clothing, energy… Read More »
Weekly Geopolitical Report – The Qatar Situation: Part I (August 7, 2017)
by Bill O’Grady On June 6th, several members of the Gulf Cooperation Council (GCC)[1] announced a sweeping blockade of Qatar, also a member of the GCC. The GCC members enforcing the blockade, led by Saudi Arabia, issued a list of 13 demands which Qatar rejected. Since the blockade was implemented, Qatar has managed to replenish basic… Read More »
Asset Allocation Weekly (August 4, 2017)
by Asset Allocation Committee Two weeks ago, we detailed our expectations for a weaker dollar. If we are correct, one of the potential effects could be inflation. A weaker dollar has two price effects. First, it directly raises import prices. Second, it gives pricing power to domestic firms competing with imports as price pressures should dissipate… Read More »
Weekly Geopolitical Report – A Coup in Riyadh (July 31, 2017)
by Bill O’Grady On June 20th, King Salman of Saudi Arabia announced that his son, Prince Mohammed bin Salman (MbS, as he is affectionately known), would be the new crown prince, replacing Prince Mohammed bin Nayef. Although the move was momentous, it was not necessarily unexpected. MbS’s stature in the kingdom had been rising since he… Read More »
Asset Allocation Weekly (July 28, 2017)
by Asset Allocation Committee As the S&P 500 steadily rises to new highs, concerns about a correction will likely increase. Since 1987, major market pullbacks have been associated with recessions and there isn’t much evidence to suggest the business cycle is set to turn. In the absence of a recession, we tend to look for factors… Read More »
Keller Quarterly (July 2017)
Letter to Investors It’s terribly hot here in the Midwest. It wouldn’t be a normal Missouri summer if it didn’t touch 100 degrees for a week or two. As uncomfortable as it is, what makes it tolerable is the knowledge that in a couple of months the brutal heat will have left us and a… Read More »
Weekly Geopolitical Report – A Productivity Boom: A Response to Robert Gordon, Part II (July 24, 2017)
by Bill O’Grady Last week, we began an analysis of Michael Mandel and Bret Swanson’s paper[1] which is a response to Robert Gordon’s argument that the West is doomed to a prolonged period of slow productivity growth. In Part I of this report, we examined the productivity issue and discussed Mandel and Swanson’s analysis of the… Read More »