Sharkey, Howes & Javer

This week on Inside the Economy with SH&J, we review the driving forces for raising interest rates and inflation including unemployment, consumer debt, and retail pricing.  Also covered is the longer-term potential growth slope for GDP.  Listen in to hear this week’s discussion, which includes insight on the United States’ dependence on trade and an update on the Eurozone.

This week on Inside the Economy, we discover why the age of low inflation may be ending and how yields are likely to be pushed higher. The Dow crossed above 20,000 for an all-time high on January 25, 2017, creating a stir in media headlines. Which sectors are being positively and negatively impacted by the incoming administration’s new policies? Listen in to find out more!

This week on Inside the Economy, we review how a strong U.S. dollar and higher interest rates have affected the exporting sector of the U.S. economy and borrowing costs over the last year. Can you guess what the next bubble may be? Listen in to find out, and hear more on expectations for manufacturing’s share of total employment here in the U.S., as well as what a cut in corporate tax receipts could mean for Federal Revenue.

In our first Inside the Economy of the new year, we discuss our economic outlook for 2017. The U.S. is about 7.5 years into the current business expansion, which is approaching the 10-year record from the 1990’s but will the S&P 500 continue to increase in valuation? What can we expect for mortgage rates this year? Listen in to hear more on these topics in our first economic update of 2017!

This week on Inside the Economy with SH&J, we discuss the recent Federal increase in interest rates and the likelihood of additional increases in 2017. How will the higher interest rates impact us in the Denver real estate market? Will we see a push on wage inflation in 2017? Listen in to hear our last economic update for 2016!

This week on Inside the Economy with SH&J, we discuss how OPEC’s recent decision to cut production impacted the U.S. stock market and the level of influence we can expect from OPEC going forward.  Additionally, the new administration may have a plan to bring overseas corporate profits back to the U.S., but will repatriation be important?   Listen in to hear more on these issues as well as U.S.  contributions to globalization by industry since 1997.

Since election day, all eyes have been on the stock market in anticipation of what the new administration may bring. In addition, the yield curve has clearly shifted up in anticipation of a potential December interest rate increase. Listen to SH&J’s discussion on the current state of the U.S. economy and the impact of international quantitative easing policies on the dollar.

As we enter the 4th quarter of 2016, here in the U.S., there is less stress in the financial system than when we started the year and the S&P 500 is at the top end of its forward price-to-earnings ratio. However, overseas, Deutsche Bank is fighting a $14 billion penalty from the U.S. Department of Justice for “mis-selling” mortgage securities before the 2008 recession. Listen in to hear more on the German bank as well as why Japan has such low interest rates despite the amount of sovereign debt outstanding.

It is no surprise that the Fed elected not to raise interest rates this month, although the Consumer Price Index is creeping back to the level the Feds are seeking. In addition, funds from Japan and the Eurozone continue to flood into U.S. based investments and will likely remain here for the foreseeable future. Why is this important? Listen in to hear this week’s economic update.

If you have any questions or topics you would like addressed, please let us know in the comments section of the blog and we will cover them during our next recording on October 10th.

Despite a decline in both the manufacturing and non-manufacturing ISM (Institute for Supply Management) survey indices, 10 year Treasury yields increased to 1.67%. For the first time in a while, we are also starting to see German and Japanese 10 year bonds in positive rate territory. Here in the U.S., household debt remained low and a survey released by BLS (Bureau of Labor Statistics) indicates that 2015 spending increased, mainly due to increased personal insurance and retirement contributions. Listen in to hear more on these issues as well as how total household debt as a percentage of GDP in the U.S. compares to Canada.