Real GDP vs FED FUNDS RATEReal GDP and the Federal Funds Rate are closely intertwined in the context of economic policy and performance. The Federal Funds Rate, set by the Federal Reserve, is a key tool used to influence economic activity. When the Fed raises the Federal Funds Rate, borrowing costs increase for consumers and
About Real Gross Domestic Product
US Debt Exploding Relative To Real GDPUS debt has risen more than 90% since 2016, with no meaningful increase in economic growth inflation-adjusted (Real terms) meaning we pay more for goods and services showing a higher nominal GDP.
As you can see in the chart the economy used to grow faster than debt and even outpaced debt in 70s, 80
Reduce risk in portfolios without hampering returns Asset allocation is ultimately about balancing returns with risks. While it is relatively easy to reduce risk in a portfolio, it is harder to do so without diminishing its return potential. Diversification, that is, adding uncorrelated assets to the portfolio, is one of the main tools available to i
GDP is Bad and You Should Feel BadThe GDP number of 2.7% growth is being propped up by net exports, while consumption is at a cycle low. This is horrible for earnings expectations and risk assets. Net exports were at a low in prior quarters, making the economy look worse off than it was. Now the economy is actually worse off than it
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