Tech-Led Reversal as Nvidia Rally Fizzles, Bitcoin Cracks

Markets saw a sharp reversal Thursday as an early surge following Nvidia’s strong earnings report gave way to broad risk-off sentiment.

Recent Blog Posts

Global Economics Intelligence executive summary, October 2022

Personal Investor

November 10, 2022

Growth rebounds in the United States The world’s two largest economies exceeded growth expectations in the third quarter of the year. The US economy rebounded to a GDP growth rate of 1.8% year over year, after two quarters of contraction. The US growth was supported largely by consumption and exports.

Investors have been better off staying fully invested

Personal Investor

November 7, 2022

The best-performing portfolio over the past 120-year period stayed fully invested throughout both Democratic and Republican administrations. Those who invested exclusively during single-party rule by their preferred party or during divided government fared much worse. The more time investors dedicated to the markets, the better, and the less time they dedicated to politics the better.

Politicians don’t radically re-engineer the economy or dramatically alter economic growth

Personal Investor

November 4, 2022

Investors are concerned that a political party might drastically re-engineer the economy. The economy has been remarkably consistent in terms of consumption, business investment, and government spending as a percentage of gross domestic product (GDP) across multiple governments. Economic activity, as measured by the median annualized quarterly percent change in US GDP, has been very similar under both single party and divided government rule.

Monetary policy matters more

Personal Investor

November 3, 2022

Monetary policy has historically impacted Presidents in a positive or negative manner. Presidents Clinton and Obama (and for a while Bush II) benefited from prolonged periods of benign inflation and easy monetary policy. Strong market returns under President Obama occurred during single-party Democratic rule, as well as during a divided government.

IRS Announces Record Increase To Retirement Plan Limits For 2023

Retirement

October 25, 2022

WASHINGTON — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. The IRS today also issued technical guidance regarding all of the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023 in Notice 2022-55PDF, posted today on IRS.gov.