Despite a healthy equity risk premium and strong fundamentals, a flattening yield curve is causing concerns among investors. The gap in long- and short-term borrowing is hovering near its lowest in over ten years. While it might be true that flattening yield curves historically have significantly increased the probability of recessions, incoming NY Fed chief Read More…
Splitting Bets hit Facebook Stock
With the world largest asset manager, BlackRock ($6.32 tn), is increasing its holding in the Social Media giant, the world’s largest stock-picking fund stands out amongst other investors. Other funds managers have reduced or eliminated their position amidst controversy about the company’s data management. This position might reveal itself as an endorsement of Facebook by Read More…
Earnings Week Volatility
With increased volatility in recent weeks, the US market is anticipating a tough earnings week. Investors fear missed expectations could change the narrative of strong global fundamentals. Strong earnings are believed to decrease volatility in current market and return optimism to the stage. With a market correction for the first time in two years, the Read More…
Consumer Spending Slows Down Despite Strong Economic Outlook
Consumer spending in the United States has slowed down in the recent months despite a tight labor market, a strong handle on short-term rates and steady economic activity around the world. Everyday consumers are puzzled by the fact that banks are becoming more cautious when it comes to lending or issuing new credit-card lines. According Read More…
Auto Dealers Struggling with Prices
Higher interest rates and the implementation of tariffs on production parts and material are creating concerns among auto dealers for increasing prices of vehicles. Auto dealers have joined hands with consumers and are lobbying to keep prices as low as possible for the consumer, worrying existential fears for the future of the business of prices Read More…
Europe’s Most Powerful Leader is Back In Control
The past couple of months have proven tough for Angela Merkel. The German Chancellor has been under a high level of political scrutiny. Germany spent many days without a proper government, which seemed to limit her authority and strengthen the power of her opposition. Her power seemed provisional and her fate as chancellor was uncertain. Read More…
Subscription: Products and Services
Subscriptions for products and services are increasing in popularity. The subscription e-commerce market has grown by more than 100 percent a year over the past five years. The largest such retailers generated more than $2.6 billion in sales in 2016, up from a mere $57.0 million in 2011. Fueled by venture-capital investments, start-ups have launched Read More…
Organizational Structure
Changes in technology are prompting organizational leadership structures to change as well. As the use of digitization, analytics, and AI progresses and extends its reach past industries and geographies, there has been additional points of thought regarding the competitive landscape beyond products and services: the company structure. For a company to avoid falling behind in the Read More…
Rising Healthcare Costs Cloud U.S Market
With political talks regarding healthcare crossing the news spectrum and the Department of Labor proposing a rule where small businesses and self-employed individuals are able to group together to purchase coverage through “association health plans” (or AHPs for short). Especially for sole proprietors, such as Uber drivers or other freelance workers emerging in what has Read More…
U.S. Trade Deficit Rises
The U.S. trade gap rose to a six-year high in November. This was driven by an increase in imports as American consumers increased their purchases of household items, luxury goods, and other products. According to the U.S. Commerce Department, the trade deficit increased by 3.2% from the previous month to $50.5 billion. Both imports and Read More…