@theMarket: Economy's Mixed Messages Support Market GainsBy Bill Schmick,
02:54PM / Friday, May 02, 2025 | |
Wednesday's release of the nation's first-quarter Gross Domestic Product stunned investors since it was the first quarterly decline in the economy since 2022. Looking beyond the headline number, however, the results told a different story.
At first blush, the minus-0.3 percent decline in GDP sent stocks lower, with the NASDAQ down 3 percent on the day at one point. The culprit behind the numbers was a 41.3 percent rise in imported goods and services. If we import more than we export, as we did substantially in the quarter, the economy's growth decreases.
The surge in imports began after the November 2024 elections and continues today. These 0 Comments
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The Retired Investor: For Whom the Tariffs TollBy Bill Schmick,
04:38PM / Thursday, May 01, 2025 | |
As the flow of container ships to the U.S. slows and the number of trucks needed to distribute Chinese goods declines, retail shelves will soon begin to empty. Unless the tariff war is reversed, consumers should expect shortages.
Tariffs (so the story goes) will fuel a U.S. manufacturing renaissance, leading to higher middle-class wages and more stable families and communities. This manufacturing resurgence will promote research, development and innovation leading to economy-wide productivity gains.
History and most economists indicate that tariffs will not deliver the desired benefits. But let's not be naysayers. After all, most Americans believe that 0 Comments
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