The US – China Cold War

In May 2020, the White House published a report, United States Strategic Approach to the People’s Republic of China, detailing a whole-of-government strategy with respect to the People’s Republic of China (PRC). This 16 page report outlines when and how…

The Wealth Of Nations – Book Of The Month

The Wealth of Nations, written by Adam Smith, is truly a masterpiece. Billionaires such as Warren Buffett and Charlie Munger have admired and praised Adam Smith's writing. Here's a video form Berkshire Hathaway's 2015 shareholder meeting, where Warren Buffett and…

Solvency Crisis Looms Over The Economy

The Federal Reserve and the US government together have injected more than $6 trillion into the economy. The US government's spending directly puts money in the hands of its citizens either by creating government jobs, or by sending out paychecks…

Why Is Universal Basic Income (UBI) Detrimental For The Society?

As the gap between the haves and have-nots grows, the concept of Universal Basic Income (UBI) seems very appealing to the populous. In this week's blog post, I will talk about how the entire concept of UBI is flawed. I…

The Federal Reserve Kicks The Can Down The Road

The US Stock market has been all over the place. Mr. Market becomes euphoric when any bad news is released, which isn't "that bad". Needless to say, the euphoria continues when there is any good news. With Federal Reserve's "whatever…

If Something Cannot Go On Forever, It Will Stop.

The US Economy is in uncharted territory. All non-essential businesses have shut down to curtail the spread of virus, the Federal Reserve is flooding the market with cash by buying just about anything it can get its hands on, the…

Is High Inflation Around The Corner?

As coronavirus outbreak has locked down many cities and states in the United States, unemployment is on a rise. According to the Department of Labor's news release on March 26, 2020, the seasonally adjusted initial unemployment claims was 3,283,000, an…

Is Coronavirus The Black Swan For The Stock Market?

Economy is like a machine, which has multiple interlocked gears that need to function in harmony. As Ray Dalio explains in How the Economic Machine Works, anytime there is a problem in one gear, the other gears will be affected…

Why Is The Federal Reserve Not Ready For The Next Recession?

The Federal Reserve plays a key role in jump starting the economy during a downturn. As outlined on the Federal Reserve website, the Congress has directed the Fed to conduct the nation's monetary policy to support three specific goals: maximum…

Current Market And Economic Conditions Across The World

Investors pay close attention to how their individual stocks are doing. While it is important to scrutinize your individual investments, it is also crucial to pay attention to global economic conditions. Globalization is a boon and bane at the same…

Are Commodities In Your Portfolio?

What are commodities? Commodities are basic goods, which are often used as inputs in the production of other goods and services. Overall, there are 4 kinds of commodities: Metals, Livestock & Meat, Energy, and Agriculture. Gold, silver, copper, hogs, live…

Slowdown In The Indian Economy

India is Asia's third largest economy. India has had an amazing growth in the past few years, however in 2019, it has experienced slowdown in its manufacturing and construction sectors. On November 7, 2019, Moody's downgraded India's outlook from "stable"…

Repo Rate Spikes, And The Fed Starts Buying T-Bills. What Does That Mean?

The US Federal Reserve announced on Friday, October 11, 2019, that it will buy $60 billion of treasury bills (T-Bills) each month to build its reserve. Jay Powell, the Federal Reserve Chairman, said that this decision was made to address…

Trade War, Federal Reserve, China, Interest Rates, Currencies, And More

There has been a lot of action in the stock and the bond market recently. In this week's blog post, I will talk about my take on the current events. Let me briefly go over these current events: United States…