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Financial and economic analysis, national and global impacts on the market, and links to the latest news from McDaniel Wealth Management. Our goal is to keep you informed with weekly updates on changing conditions and our perspective on what’s moving the market. 

Monday, September 13, 2021

The Markets The Delta variant could take a toll on economic growth. There was some good news last week. The 7-day moving average of COVID-19 cases in the United States declined. The bad news was that the rate of infection remained...

Tuesday, September 7, 2021

The Markets Stagflation isn’t trending, but it was mentioned in quite a few headlines last week. Stagflation is a portmanteau of ‘stagnation’ and ‘inflation.’ It occurs when a country experiences slow...

Monday, August 30, 2021

The Markets “Raise your words, not your voice. It is rain that grows flowers, not thunder,” advised the Persian poet Rumi. Last week, Federal Reserve (Fed) Chair Jerome Powell’s words helped grow the week’s...

Monday, August 23, 2021

The Markets Markets were shaken last week by a potent cocktail of central bank tapering and economic growth concerns mixed with coronavirus and a splash of the new Chinese privacy law. On Wednesday, the minutes of the United States...

Monday, August 16, 2021

The Markets What is the most important driver of economic growth in the United States? The most common way to measure economic output is Gross Domestic Product or GDP. It’s the value of all goods and services produced in our...

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Monday, August 9, 2021

Are we there yet? For months, investors have wondered when the Federal Reserve (Fed) might begin to “normalize” its policies, a process that will eventually lead to higher inteårest rates. Last week, a...

Monday, August 2, 2021

The Chinese dragon cast a shadow over free trade and foreign investment last week. For decades, investors have recognized the investment potential of China. Since the country opened to foreign trade and investment in 1979, its economy...

Monday, July 26, 2021

Shortest ever. Last week, the National Bureau of Economic Research (NBER) finally announced the official dates for the recession that occurred in 2020. Economic activity peaked in February 2020 and bottomed in April 2020. That makes...

Monday, July 19, 2021

The term “peak growth” has become almost as popular as the comedy show Ted Lasso. Peak growth is a catchphrase with the potential to mislead. When the term is applied to the U.S. economy, it does not mean the United States...

Monday, July 12, 2021

There was a gapers’ block in financial markets last week as equity investors slowed to see what the United States Treasury bond market was up to. U.S. Treasury bonds rallied last week. Yields on 10-year Treasuries dropped from 1...

Tuesday, July 6, 2021

The world is about halfway back to normal. The Economist developed the Global Normalcy Index (GNI) to measure the post-pandemic return to normal. In March 2020, the GNI was 35 overall, with 100 being the normal pre-pandemic level. At...

Monday, June 28, 2021

What begins with the letter “I”? Infrastructure is essential and sometimes taken for granted. Pipes carry drinking water to our homes, offices, and healthcare facilities, and carry away sewage and wastewater. Highways,...

Monday, June 21, 2021

Is that a hawk? The Federal Reserve Open Market Committee (FOMC) met last week. They get together eight times a year to review current economic and financial conditions, assess risks to price stability and economic growth, and adjust...

Monday, June 14, 2021

It’s transitory. It’s not transitory. It’s transitory. It’s not transitory. Media analysts were plucking the inflation daisy petals last week. On Thursday, the Bureau of Labor Statistics released the Consumer...

Monday, June 7, 2021

Pulling the economy out of the shed. If you’ve ever stored tools or machinery in a shed or garage for an extended period of time, you know they often need some care and repair to function properly. The same appears to be true of...

Tuesday, June 1, 2021

Are we at a tipping point? One side effect of the pandemic was a collapse in demand for oil, which led to “the largest revision to the value of the oil industry’s assets in at least a decade,” reported Collin Eaton...

Monday, May 24, 2021

The Markets What do markets hate? They hate uncertainty, and recently there has been plenty of it. Some of the questions plaguing economists and pundits include: Why aren’t people returning to work? Americans, like people in...

Tuesday, May 18, 2021

Uncle Inflation is here. Will he overstay his welcome? Ever since the financial crisis, central banks have pursued expansionary monetary policies to encourage reflation and avoid deflation. Well, it’s taken some time, but...

Monday, May 10, 2021

Like a gender reveal gone wrong, last week’s employment report delivered an unexpected surprise. Economists estimated 975,000 new jobs would be created in April. The United States Bureau of Labor Statistics (BLS) reported there...

Monday, May 3, 2021

It’s Spring and economic recovery is in the air. Last week, the Bureau of Economic Analysis reported the U.S. economy grew at a 6.4 percent annualized rate for the first three months of 2021. While that’s good news for...

Monday, April 26, 2021

It wasn’t just the price of pork chops. Last week, as investors weighed the news, strong corporate earnings were offset by higher grocery prices and rising numbers of global coronavirus cases. Solid corporate earnings weighed...

Tuesday, April 20, 2021

As you are aware, the Treasury Department and Internal Revenue Service announced that the federal income tax filing due date was extended from April 15, 2021, to May 17, 2021. That deadline is quickly approaching! We are ready to...

Monday, April 19, 2021

Where are Treasury bonds going? The direction of bond yields is influenced by investors’ expectations for economic growth, among other factors. When economic growth is expected to weaken, bond yields tend to move lower. When...

Monday, April 12, 2021

Investors didn’t stumble over inflation last week. Why not? Inflation – rising prices of goods and services – can be measured in a variety of ways. For example, the Consumer Price Index considers changes in the amount...

Monday, April 5, 2021

Zoom, zoom, zoom.Big economies tend to recover from recessions about as quickly as semi-trucks accelerate from stop lights. In other words, recovery tends to be slow. That may not be the case this time.“Everything in this economic...

Monday, March 29, 2021

Last week, unemployment claims were looking good and consumers were feeling good. The number of Americans applying for first-time unemployment benefits declined. Just 684,000 people filed claims during the week of March 20, down 97,000...

Monday, March 22, 2021

What are professional asset managers thinking? Bank of America recently published the results of its March global asset managers’ survey, which polls 220 professional investors responsible for about $630 billion in assets,...

Monday, March 15, 2021

Investors had a lot to be enthusiastic about last week. Major stock indices in the United States soared, finishing the week higher and setting new records along the way, reported Al Root of Barron’s. There was plenty of good news...

Monday, March 8, 2021

Neanderthal DNA may make people more – or less – susceptible to COVID-19, reported The Economist. It all depends on whether you have the genes and, if you do, which DNA string you inherited. No matter what your gene...

Monday, March 1, 2021

On Monday, Feb. 22, the White House announced several changes to the Paycheck Protection Program (PPP) that went into effect on Wednesday, Feb. 24. These changes are intended to further target “the smallest businesses and those...

Monday, March 1, 2021

Students of financial markets may have noted a historically unusual event last week. On Thursday, the yield on 10-year U.S. Treasury notes briefly matched the dividend yield for the Standard & Poor’s (S&P) 500 Index. This type of...

Monday, February 22, 2021

It’s a contrarian’s dream come true. Contrarian investors like to buck the trend. They buy when other investors are selling and sell when others are buying. Last week, Bank of America (BofA) delivered a contrarian’s...

Thursday, February 18, 2021

All LLCs doing business in Kentucky must file an Annual Report every year. You need to file an Annual Report in order to keep your LLC in compliance and in good standing with the state. Reports can be filed any time between January 1...

Tuesday, February 16, 2021

Way back, when radio disk jockeys played 45-rpm vinyl singles, the A-side of a disk was the song the record company was promoting and the other side – the flip side – held a song that sometimes had an equal or greater...

Monday, February 8, 2021

The Markets It’s not a black diamond ski run yet, but the yield curve for U.S. Treasuries is steeper than it has been in a while. A yield curve is the line on a graph showing yields for different maturities of bonds. Yield curves...

Monday, February 1, 2021

Recently, the Internal Revenue Service (IRS) announced that tax season will start a little later than usual. This year the IRS will begin accepting and processing 2020 tax returns on Friday, February 12, 2021.1 In light of the...

Monday, February 1, 2021

The Markets They say people watching the same event often see different things. That seems to have been the case last week when share prices of a few companies experienced tremendous volatility. Some cast the events as a David vs....

Monday, January 25, 2021

The Markets Last week, as COVID-19 vaccination efforts continued, there was speculation about stock market corrections and asset bubbles. On Sunday morning, Bloomberg reported 63 million doses of the coronavirus vaccine had been...

Tuesday, January 19, 2021

Investors were rocked by economic data showing the economy hit the brakes hard in December. Last week, major U.S. stock indices decelerated as investors gaped at the economic damage caused by the rising number of coronavirus cases...

Monday, January 11, 2021

The event at the United States Capitol building had a resounding impact around the world, but it didn’t deter global stock markets. Last week, investors weighed the violent disruption of America’s 2020 presidential election...

Monday, January 4, 2021

Last week was the cherry on top of a turbulent year for investors. After the $900 billion fiscal stimulus bill was signed on Sunday, major U.S. stock indices moved higher. The Washington Post reported, “The S&P 500-stock index,...

Monday, December 28, 2020

U.S. stock markets remained calm as a fresh chapter opened in the coronavirus stimulus saga last week. Congress managed to cobble together a new stimulus package that was acceptable to both sides and pass it. The proposed package...

Monday, December 14, 2020

When it comes to beverages, frothy can be delicious. In what may be the least inspiring description of fizzy drinks ever written, a group of food engineers explained, “Aeration in beverages, which is manifested as foam or bubbles...

Monday, December 7, 2020

When is bad news good news? Take a look at last week. Major stock indices in the United States hit all-time highs on Friday, despite a lackluster employment report and a surge in COVID-19 cases, reported Lewis Krauskopf of Reuters....

Monday, November 30, 2020

Last week, vaccine optimism immunized investors against signs of economic weakness. In previous commentaries we’ve written about narrative economics, which holds that popular stories may affect individual and collective economic...

Monday, November 23, 2020

The U.S. economy is like a semi-trailer truck. No one likes being stuck behind a semi at a stoplight because big trucks don’t go from zero to 60 in 2.5 seconds. Neither does the U.S. economy. When the pandemic brought our economy...

Monday, November 16, 2020

Vaccine can be a powerful word. It’s worth 14 points in Scrabble (42 on a triple word square) and, last week, it was worth a whole lot more than that to financial markets. On Monday, a pharmaceutical company and a biotech company...

Monday, November 9, 2020

It’s said markets hate uncertainty, but that wasn’t the case last week. Despite tremendous uncertainty about the outcome of the United States election, major domestic and international stock indices moved higher and the...

Monday, November 2, 2020

The Markets Last week, financial markets and economic data told very different stories. Reviewing economic data is a bit like looking in a rearview mirror. Typically, it offers information about what is behind us. For example, last...

Monday, October 26, 2020

The Markets Stimulus talks led investors in a merry dance last week. So far in 2020, stock markets have been sensitive to fiscal stimulus. Last week, there was optimism a new stimulus package could be negotiated before the election....

Monday, October 19, 2020

The Markets It was a turbulent week for investors. Waves of positive and negative news buffeted financial markets last week: The financial sector delivered upbeat earnings news Currently, many financial companies in the Standard &...

Monday, October 12, 2020

The Markets Yes. No. Maybe? Markets were sharply focused on the status of stimulus last week. First, it was on. Then, it was off. Then, it might be on. Then, it was off again. There was a big bill. There was a smaller bill. There were...

Monday, October 5, 2020

Last week, the third quarter of 2020 came to an end – and the fourth quarter delivered a doozy of an October surprise. President Trump has the coronavirus On Friday Americans awoke to the news President Trump had contracted...

Monday, September 28, 2020

For four weeks, the U.S. stock market has sparked and sputtered like a campfire in light rain. Today, pandemic-driven demand is providing fuel for the investors. The need for certain types of products and services has accelerated and...

Monday, September 21, 2020

Investors weren’t happy with central banks last week. After the Federal Open Market Committee (FOMC) meeting, Federal Reserve Chair Jerome Powell confirmed the economy is recovering more quickly than anticipated: “With the...

Tuesday, September 15, 2020

Last week, the Nasdaq Composite Index set another record. So far, 2020 has been memorable for many reasons, not the least of which is the incredible speed at which some events have been occurring in financial markets. This year,...

Tuesday, September 8, 2020

Stock markets in the United States retreated a bit last week. U.S. stocks have been trending higher for months. Last week, they gave back some gains. The Nasdaq Composite dropped 3.3 percent, while the S&P 500 Index fell 2.3 percent,...

Monday, August 31, 2020

8.31.2020 The Markets The stock market rallies like it’s 1986. August has been a good month for stock investors. At the end of last week, the S&P 500 Index was up 6.8 percent for the month. The Index is poised to deliver its best...

Monday, August 3, 2020

AUG 2020 Commentary August 3, 2020 The Markets Last week delivered a mixed bag of financial and economic news. As many expected, the U.S. economy did not fare well during the second quarter. COVID-19 lockdowns and business closings...

Monday, July 20, 2020

JUL 2020 Commentary July 20, 2020 The Markets Is the United States economy recovering or faltering? It depends on who you ask and which data you consider. For example, last week, the Department of Labor reported fewer people applied...

Tuesday, July 14, 2020

JUL 2020 Commentary July 13, 2020 The Markets Please don’t scream inside your heart. Last week, a reopened Japanese theme park asked patrons to wear masks to help reduce the spread of coronavirus. It also asked them not to...

Monday, July 6, 2020

JUL 2020 Commentary July 6, 2020The MarketsWhat a quarter!Who could have guessed a global pandemic would produce outsized stock market returns? Near the end of last quarter (March 23), the Standard & Poor’s 500 Index was down 30...

Tuesday, June 30, 2020

JUN 2020 Commentary June 29, 2020The MarketsBlame it on the coronavirus.Stock markets in the United States and Europe retreated last week as the number of new COVID-19 cases increased steadily in America. On Thursday, there were more...

Wednesday, June 24, 2020

Could it be the upside surprises?U.S. stock markets have marched higher despite a pandemic, an economic downturn, and social justice protests – and a lot of people have wondered why.1Greg Rosalsky of Plant Money spoke with Nobel...

Monday, June 15, 2020

The Nasdaq Composite dipped its toes into record territory last week before retreating. Stock indices in the United States rallied early last week on optimism about the reopening of businesses across the country. The Nasdaq Composite...

Monday, June 8, 2020

The employment report electrified U.S. stock markets last week.American stock markets responded enthusiastically to the news U.S. unemployment was 13.3 percent in May. If it seems inexplicable double-digit unemployment would thrill...

Monday, June 1, 2020

It was a good week for stock markets in the United States, but there was trouble in Asia. U.S. stock markets rallied last week. The Dow Jones Industrial Average, Standard & Poor’s 500 Index, and Nasdaq Composite all gained more...

Tuesday, May 26, 2020

The Markets It was a good week for stock markets in the United States, but there was trouble in Asia. U.S. stock markets rallied last week. The Dow Jones Industrial Average, Standard & Poor’s 500 Index, and Nasdaq Composite all...

Monday, May 18, 2020

America is reopening, state by state. That’s welcome news for many businesses, but we’re far from business as usual. Last week’s economic news included unemployment hitting an 80-year high, a record drop in retail...

Tuesday, May 12, 2020

Lots of useful information in our Spring 2020 Newsletter!

Monday, May 11, 2020

The stock market is not the economy. It’s an important point to remember when headlines marvel that U.S. stock markets are moving higher while the U.S. economy is contracting. Stock markets are not mindful of the present moment....

Monday, May 4, 2020

There are signs COVID-19 may be in retreat. Last week, the Centers for Disease Control reported, overall in the United States, for the week ending April 25 (officially week 17 of the coronavirus), the number of:1 • People visiting...

Monday, April 27, 2020

We live in interesting times. There is discussion about whether the saying, “May you live in interesting times,” is a blessing or a curse. At this point in 2020, we all understand why.1 Last week, the world watched in...