August 29, 2017— The topic of immigration is frequently in the news though typically with a focus on illegal immigration and the politically charged issues of a wall on the southern border, deportations, and the Deferred Action for Childhood Arrivals (DACA) policy, to name a few. We took note recently when two senators, Tom Cotton (R-AR) and David Perdue (R-GA), proposed legislation to affect legal immigration, a plan that was endorsed by President Trump.
July 28, 2017— The initial estimate of GDP growth for 2Q 2017 was solid at 2.6%—not as strong as we and others expected, but certainly strong enough to confirm the weak first quarter was not indicative of a weakening economy. As we discussed at the time, 1Q was an odd combination of very weak consumer spending coming from low heating bills in a warm winter, some slowdown in auto sales, and a massive surge in business investment.
June 27, 2017—Seasoned investors are well aware that market prices are set at the margin, or alternatively, it is price and not quantity that matters for small flows. Sometimes the small percentage (or “flow”) of transactions occurring is representative of where a much larger “stock” or percentage of the market would trade; and other times, it isn’t.