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Daily Blog

Thursday, August 16, 2018

Yes, I bring back a retro term to describe the perennial lackluster Eurozone. Germany’s growth has been a bright spot but it is hard to get excited about yesterday’s report of its quarterly (annualized) 1.8% GDP growth when America grew at a 4.1% clip. The WSJ reports “Germany has pulled off an impressive feat”, said Oliver Rakau, chief German economist at Oxford Economics. “In contrast to the performance of its Eurozone peers, growth has picked up slightly in the second quarter”. Talk about a downer. I guess if you set the bar low enough anything is good. The simple fact is that the success of the U.S is squarely attributable to pro-business fiscal policies emanating from slashing tax rates and crushing blows to the regulatory framework. In other words, these pro-business policies have unleashed growth. I feel bad for the European people since their leaders do not clearly articulate that every single time pro-business policies are enacted more growth and more jobs result. Eurosclerosis will continue until the European Union gets the memo that U.S. pro-growth policies have made them uncompetitive on the world stage. Please read our 2018 Forecast: Pro-Business Economy Unleashes Growth for further insight.

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Weekly Commentary & Statistics

Monday, August 13, 2018

Stocks took a leg down for the week. With 2Q18 earnings season nearly over, there were few counter-narratives to tariff issues and the shadow Turkish financial instability cast over world markets.

Monthly Commentary & Outlook

July 2018

Strong economic news punctuated the first half of the year, yet markets remained mired in struggle. Main Street has been celebrating as the economy has quietly amassed record highs in U.S. wealth, employment and spending.

  • The economy is quietly enjoying a “stealth” economic boom driven by pro-business tax cuts
  • Small business optimism on a “stratospheric trajectory” resulting in robust expansion plans
  • Trade tariff retaliation, rising inflation and a rising U.S. dollar spike global market volatility
  • Strength amidst uncertainty argues for broad global diversification

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