Wednesday, May 18, 2016

Economics to Watch



Professor Ernie Goss has such an interesting newsletter of economic indicators and analysis that every month it is a must read. 

And, his watch list is a good way to filter the news as it happens: 

The Jobs Report:
 
On June 3, the Bureau of Labor Statistics will release the April jobs report. Another very weak report (i.e. less than 100,000 jobs and an increase in the unemployment rate) will push the Federal Reserve to forego raising raise rates at their June 14-15 meetings.
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Brexit:
 
On June 23, British citizens will vote to exit or remain in the European Union. A majority vote to exit will result in a spiking of global financial volatility. This will push global investors into "safe haven" investments including U.S. Treasury bonds. This move will drive U.S. interest rates lower, the value of the dollar higher and agriculture commodity prices lower.
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Housing Prices:  

On the last Tuesday of May, S&P will release the Case-Shiller home price index for March. 

Yearly growth of more than 5% will be more evidence of growing housing price bubbles in some parts of the nation.