Research & News
Daily Comment (March 19, 2019)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Financial markets are broadly higher this morning; the only exception is the dollar, which is coming under some modest pressure. Other than that, it’s a very quiet morning as we await the Fed. Here is what we are watching this morning: Brexit: PM May was… Read More »
Weekly Geopolitical Report – Modern Monetary Theory: Part II (March 18, 2019)
by Bill O’Grady In Part I of this four-part series, we introduced this report and discussed the origin narratives of Modern Monetary Theory (MMT). This week, we will examine the principles and consequences of the theory. Principles of MMT[1] MMT begins its analysis with a focus on macroeconomic identities and flows.[2] The theory states that the… Read More »
Daily Comment (March 18, 2019)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] It’s a modest risk-on day on this Monday in late winter. Here is what we are watching this morning: Fed meeting: As noted last week, the FOMC meets this week. Although there are hopes that the Fed may set the terminal level for the balance… Read More »
Asset Allocation Weekly (March 15, 2019)
by Asset Allocation Committee The Financial Accounts of the United States, formerly known as the Flow of Funds Report, was released last week. It is a plethora of information about the state of the economy. Below we discuss the charts we find most noteworthy. First, here is the saving balance by sector. The tax cut has… Read More »
Daily Comment (March 15, 2019)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Happy Ides of March Friday! The National Party Congress (NPC) ended in China and New Zealand is reeling from a mass shooting. U.S. equity futures are higher. Here is what we are watching this morning: The National Party Congress: Unlike previous events, this one was… Read More »
Daily Comment (March 14, 2019)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Happy Pi Day![1] It’s a very quiet day so far this morning. U.S. equity futures are modestly lower. Here is what we are watching: Brexit: As expected, MPs voted to avoid a no-deal Brexit, despite an 11th hour plea from the PM to vote against… Read More »
Daily Comment (March 13, 2019)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] U.S. equity futures are modestly higher this morning in a quiet news environment. Here is what we are watching this morning: Brexit: As expected, PM May’s plan failed again;[1] although the vote was closer this time, it was nowhere close to passing.[2] Today, Parliament votes… Read More »
Daily Comment (March 12, 2019)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] U.S. equity futures are flat this morning after a strong run yesterday. Here is what we are watching this morning: Brexit: In an 11th hour attempt to seal a deal,[1] PM May and EU Commissioner Juncker offered statements to clarify and ease the Irish backstop… Read More »
Weekly Geopolitical Report – Modern Monetary Theory: Part I (March 11, 2019)
by Bill O’Grady In recent weeks, Modern Monetary Theory (MMT) has become a hot topic of discussion. Given the level of controversy, we want to provide our take on the theory. One could wonder if this topic is appropriate for a geopolitical report. We are using this report to examine MMT because, in our opinion, its… Read More »
Daily Comment (March 11, 2019)
by Bill O’Grady and Thomas Wash [Posted: 9:30 AM EDT] Equity futures are mostly higher this morning, although Dow futures are lower on the Ethiopian airlines crash.[1] Here is what we are watching this morning: Chinese trade: It appears the trade summit between China and the U.S. will likely be delayed, probably into April.[2] There… Read More »