Category: Financial Tech

Déjà vu with a US Government Shutdown – The Guide Rock Capital Market Commentary – FT043

“It’s déjà vu all over again,” Yogi Berra reportedly said as he watched Yankee teammates Mickey Mantle and Roger Maris smack back-to-back home runs for the umpteenth time. Americans are experiencing déjà vu all over again, too. Sure, the prospect of another fiscal showdown doesn’t electrify a crowd like a couple of major league home runs. All the same, investors’ response to the possibility the U.S. government might partially shut down on October 1 was muted. Some U.S. stock markets gave back a little for the week; others moved higher. All remained up year-to-date. Listen Mobile: So, are investors confident

Click for more / Podcast Player>

The Fed: lather-rinse-repeat – Commentary on Quantitative Easing – The Guide Rock Capital Market Commentary – FT042

We’re going to do it…We’re going to do it…We’re not going to do it…Yet. Last week, the U.S. Federal Open Market Committee gave stock markets a gift that, on a scale of thrills, might have been on par with Marilyn Monroe singing happy birthday to JFK. On Wednesday, the FOMC announced (without a trace of breathiness): Listen Mobile: “Taking into account the extent of federal fiscal retrenchment, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program a year ago as consistent with growing underlying strength in the broader economy. However,

Click for more / Podcast Player>

The Change in American Employment and Pay in State Government – The Guide Rock Capital Market Commentary – FT041

Confluences are the building blocks of the world’s waterways. When two or more rivers meet, changes in velocity and turbulence tend to result in geologic scouring; erosive activity that may alter the shape of the river and its bed. The action may produce a ‘scour hole’ downstream from the confluence. For a river runner, a hole creates “potential for trouble and the need for deft maneuvers.” America may be heading toward a scour hole that is being shaped by a confluence of factors and events, domestic and global, economic and demographic. Listen Mobile: Several of these factors were highlighted by

Click for more / Podcast Player>

Post Labor Day Employment Data and the NFL – The Guide Rock Capital Market Commentary – FT040

Last week was crunch time in the National Football League (NFL). With the 2013 regular season approaching rapidly, NFL teams cut about 700 players from their rosters over the Labor Day weekend.  That was a big cut—about a 40 percent drop in player employment—as rosters were pared from 90 to 53 players.  However, it’s not likely to have a significant effect on U.S. unemployment data—and that’s really what the week ahead is all about. Last week, markets jittered and slumped on news that Syria was thought to have used chemical weapons against civilians. According to The New York Times, 70

Click for more / Podcast Player>

The Next Big Thing in Disruptive Technology – The Guide Rock Capital Market Commentary – FT039

“So much depends / upon / a red wheel / barrow / glazed with rain / water / beside the white / chickens.” Well, the U.S. Federal Reserve’s monetary policy is a lot more complex than the simple tools mentioned in the oft-memorized William Carlos Williams’ poem, The Red Wheelbarrow, but an awful lot is depending on it. In some of those countries that have been affected negatively by changing expectations about quantitative easing, the importance of chickens, wheelbarrows, and other basic tools to a family’s economic well-being has not been forgotten. Listen Mobile: During the past 10 weeks, currencies

Click for more / Podcast Player>

How Uncertainty Affects the Market and the European Economy – The Guide Rock Capital Market Commentary – FT038

Robert Burns, father of fourteen and writer of Auld Lang Syne, once said, “There is no such uncertainty as a sure thing.” Was he ever right! Here are a few sure things: · The Federal Reserve intends to reduce economic stimulus by tapering quantitative easing (QE). · Federal Reserve Chairman Ben Bernanke plans to retire. · Gross Domestic Product (GDP) growth was positive in Europe during the second quarter. Listen Mobile: Here are some of the uncertainties which may arise from them: · When will QE begin to end? How will changes in the program affect world economies and markets?

Click for more / Podcast Player>