The Debt Ceiling Distraction

Much to the surprise of the Republican Party and the press, President Trump and Democratic leaders have been coming to agreements lately, including an alleged deal on DACA legislation this week and an agreement last week to put the debt ceiling debate off until December, as Democrats wanted. There were even whispers that they might do away with the ceiling altogether.

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Will Trump Cut the Red Tape?

Of the many polarizations of the United States today, the battle over regulation is particularly fierce and many years in the making. Over the past decades, since at least the presidency of Ronald Reagan, the right and the Republican Party have come to view regulation as the premier sign of government overreach, stifling freedoms and hobbling economic growth. The left and the Democrats for the most part see regulation as the vital bulwark protecting the mass of Americans from corporate and government abuse.

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Take Advantage of Shift From Bonds to Stocks

For several years, investors have anticipated a “great rotation” from bonds into equities, and for several years, they were dead wrong. In fact, even as equities were quietly rising for the past years, both domestic and international money has continued to surge into bonds. At long last, that is beginning to reverse, which demands a reconsideration of strategies that seemingly have worked so well and so easily for so long. As long as bond prices were rising, pouring money into assets that had a certain return looked like a slam dunk. No longer.

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Wrong Number

The press didn’t see it coming. Or did they? This week, we examine the role of data – and delusion – in this election. Nate Silver reflects on the promise and pitfalls of polling, and Zachary Karabell discusses how financial indicators gloss over the gritty realities of American life. Plus: how a plan to dismantle the electoral college could make elections more democratic, and election coverage more interesting.

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Making the Most of a ‘Placid’ Market

At long last, the presidential election of 2016 is entering its final stages. In one form or another, this election has occupied an outsized place in American life since the middle of 2015, by far the longest and most extensive political campaign we’ve ever experienced. Much of this campaign season’s noise will have little impact on markets, the economy, interest rates, economic growth, or the fate of companies. In many respects, there is an inverse relationship between the furor of this election and its clear impacts—particularly if Hillary Clinton and the Democrats win.

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