Pragmatic Capitalism

Practical Views on Money & Finance

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Four Forces Will Shape Markets in 2015

By Marc Chandler, Marc to Market The investment climate is being shaped by four forces:  De-synchronized business cycle with the US ahead of the pack  The prospects of sovereign bond purchases by the ECB, amid political uncertainty sparked by Geece’s snap election  The continued drop in energy prices is a stimuluative writ large but poses… Read More

Thinking about the Cost of College

The beginning of the new school year heightens the anxiety over the rising cost of higher education. The cost of a college education is increasingly beyond the means of average American family. Tuition has risen faster than inflation, student debt has soared and jobs are difficult to secure.

Spot the Secular Stagnation

Growth in the euro area has also broken down. It has yet to initiate a new expansion trend, which is in part, why some do think that it has not really and truly exited its recession.

Chart of the Day: Inflation Fears are Rising

The Great Graphic was tweeted by, and comes from Deutsche Bank which used EPFR data. The chart depicts the money flowing in and out of the ETFs and open-ended mutual funds that offer investors protection from inflation.

Exaggerating the Dollar’s Demise

The headline of the Financial Times today reads “Paris rails against the dollar’s dominance.” It could have been written nearly any time in the past half century. After all it was a former French President Giscard d’Estaing, who as finance minister in the 1960s, complained about the “exorbitant privilege” that the US drew from the role of the dollar (the phrase is often attributed to Charles De Gaulle).

Refresher: CPI and the PCE Deflator

Since extraordinary monetary policy measures were taken, some observers have warned of inflation risks lurking around every corner. With CPI rising above 2%, could they finally be right?

An OIl Update

What are the major factors impacting oil prices and where might prices be headed in the future?