Logic Capital

Don't chase performance.

What Is the Velocity of Money?
Simply defined, the velocity of money is a measure of the economic activity of a nation. It looks at how many times a unit of currency ($1 in the case of the United States) flows through the economy and is used by the various members of a society.

All else equal, the faster money travels (the higher the velocity of money) and the more transactions in which it is used, the healthier the economy, the richer the citizens, and the more vibrant the financial system. The velocity of money tells you how efficient $1 of money supply is at creating economic activity.

Directly related to Income Inequality and effectiveness of US Tax Policy. This is a flashing red light to reconsider existing economic policies.

fred.stlouisfed.org

This was a generational event that still influences investment decisions.

The Bull Market Began 10 Years Ago. Why Aren’t More People Celebrating? Americans are still scarred by the financial crisis, and the fruits of this decade’s record-breaking rally fell mostly to the rich.

http://scottgrannis.blogspot.com/2019/01/key-economic-indicators-are-mostly.html

What a difference 30 days can make. Happy 2019!

Key economic indicators are mostly positive Lots has transpired since equity markets hit their lows the day before Christmas '18. Markets were panicked over a number of things: the shu...

http://scottgrannis.blogspot.com/2018/12/clouds-and-silver-linings.html

CURRENT PERSPECTIVE FROM MY FAVORITE ECONOMIST.

Clouds and silver linings Markets have been unusually nervous and volatile since late October, driven by fears of an escalating trade war with China, emerging weaknes...

Tariffs 101:

* Tariffs raise the prices on goods consumed by domestic consumers (effectively a consumption tax). They are not a punitive tax paid by the country which produces the imported goods.

* Even the threat of tariffs allows local producers the ability to raise their prices (also an effective tax to domestic consumers) in anticipation of higher import prices on the non-US alternative.

* Tariffs are the equivalent of using a bulldozer in your front yard to spread fertilizer and mulch needed to keep a healthy landscape.

* This isn't something that most of the electorate understands.
When 1 in 3 Americans can't name a branch of government, why should they understand tariffs. #45 understands this.

* Free-trade and free-markets allow for the proper allocation of capital and labor to achieve the highest return on investment.
Consumers get valuable products at the lowest possible prices. When was this forgotten by policy makers?

* A trade deficit is not a one-way street. One country is not taking advantage of the other. This deserves its own post.

* But what everyone needs to know...WE ARE NOT COLLECTING TAXES FROM CHINA!!!!!!!

www.logiccapital.com

Behavioral Economics 101

Causation and correlation are always mistaken for each other.

Trump launches early blame game on markets and the economy The president looks to blame Democrats and the Fed for declines in the stock market. Analysts cite many other explanations.