Home / Macroeconomics

Macroeconomics

Macroeconomics

The Permanent Portfolio

==========================================I will admit, when I first read about the Permanent Portfolio in the late-80s, I was somewhat skeptical, but not totally dismissive.  Here is the classic Permanent Portfolio, equal proportions of:S&P 500 stocksThe longest Treasury BondsSpot GoldMoney market fundsThink about Inflation, how do these assets do?S&P 500 stocks – mediocre to pretty goodThe longest Treasury Bonds – cratersSpot Gold – soarsMoney market funds – keeps value, earns incomeThink about Deflation, how do these assets do?S&...

Read More »

Redacted Version of the March 2017 FOMC Statement

Photo Credit: Norman Maddeaux====================================February 2017March 2017CommentsInformation received since the Federal Open Market Committee met in December indicates that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace.Information received since the Federal Open Market Committee met in February indicates that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace.No ...

Read More »

On the Pursuit of Economic Growth

Picture Credit: Asian Development Bank========================I wrote this to summarize my thoughts from a chat session that I was able to participate in at Thompson Reuters Global Markets Forum yesterday.  It was wider ranging than this, but was a very enjoyable time.  Thanks to Manoj Rawal for inviting me.On the Pursuit of Economic GrowthI think one of the conceits of the modern era is ...

Read More »

The Rules, Part LXIII

Photo Credit: Pete Edgeler==========================Onto the next rule:“We pay disclosed compensation.  We pay undisclosed compensation.  We don’t pay both disclosed compensation and undisclosed compensation.”I didn’t originate this rule, and I am not sure who did.  I learned it at Provident Mutual from the Senior Executives of Pension Division when I worked there in the mid-’90s.  There is a broader rule behind it...

Read More »
error: Content is protected !!