In our view, allocating capital is one of management’s most important responsibilities. There are several ways management can allocate the capital a company generates, including mergers and acquisitions (M&A), capital expenditures (money allocated by a business or organization for the acquisition or maintenance of fixed assets, such as land, buildings, and equipment) and research and […]
-
The End of Quantitative Easing
On Wednesday, the Fed ended the third round of Quantitative Easing (QE3). At its inception in September 2012, many were critical of the policy, fearing it would lead to higher inflation and a weaker dollar. As can be seen from the chart that appears directly below, the dollar actually strengthened while QE3 was in effect. […]
-
Surveying the Labor Market
For the week ended October 18, initial claims for unemployment benefits increased by 17,000 to a seasonally adjusted 283,000. The four-week average for initial claims, which smooths out week-to-week volatility, fell 3,000 to 281,000, its lowest level since May 2000. The sustained decline in the number of initial claims (depicted below) suggests that labor-market dynamics […]
-
Mid-Week Market Update
We noted in a recent Weekly Economic Update that we expected market volatility to increase. It has certainly done so. Some of the primary factors we believe are behind the increased volatility are growing uncertainty about US monetary policy, somewhat dimmer economic prospects for Europe and China, and the possible spread of the Ebola virus […]