Hello friends and fellow financiers. Hope everyone has been surviving despite my lack of posts. It’s been a crazy semester, but it has been fun. Time to share the love.
What’s been going on in the world economy? More than my fingers can type. Here is an article about the current state of the US. Some highlights include petroleum consumption down 21% since 2005, but production has increased. Unemployment has dropped lower than the mystical economists have predicted during the recovery, but the magnitude of underemployment and job force participation rates can’t be ignored. But a lot of talk has been centered around inflation with the Federal Reserve raising interest rates. I continue to harp on the importance of wage growth. You won’t see inflation without wage growth. This chart from WSJ illustrates wages growth compared to other developed countries. I think it speaks for itself…
Let’s not hop on the Fed news bandwagon quite yet. Instead here’s a good article/interview with one of the newer mystics (economists) named Sufi. He wrote a book that argued the recession occured due to household debt, and points to college loan debt mixed with interest rate hikes may concaught a dangerous situation. He also builds on my wage growth points. Very good read, you’ll learn a lot! Via Marketwatch
On last consideration this weekend comes from the ZeroHedge. NASA figures that California has only 1 year left of water in reservoirs. Only 1 year. Reiterating my point of investing in water feels appropriate. Via ZH