In A Changing World, The Old Economics May No Longer Apply

In A Changing World, The Old Economics May No Longer Apply

Initial Claims - State (NSA)



Universal Value Advisors

One must be careful in interpreting data. The world has changed, and it impacts how people behave and ultimately the resulting data. The recent Retail Sales data is a case in point. It cannot be interpreted with a pre-virus backdrop. It's rise in September 2020 doesn't mean the same as a similar rise would have meant in September 2019. 

We have seen some back-up in interest rates over the past month. Fixed income investors are worried about excessive deficits and the resulting supply of debt (on top of record or near record corporate debt). History tells us that this is temporary, and we have a Fed as the head deficit cheerleader. There are implications, too, for the dollar's status as the world's reserve