Taxes, Balance of Payments and the USD Paradox

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Investors were finally treated yesterday to some of the most important compromise provisions to come out of the House-Senate conference on the Tax Cuts and Jobs Act. Among them were: 21% corporate rate Reduction of the top wage rate to 37% 20% deduction on pass-through income Full corporate expensing of capital investments for the next […]

The Low Level of the VIX Isn’t a Mystery

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The drop in the VIX to ultra-low levels in 2017 has been a point of consternation for market participants and largely misunderstood. Some market participants view the low level of the VIX as an indication of excessively positive sentiment among investors and thus a contrary indicator for the general direction of stock prices. But, the […]

Bitcoin: What It Is And What It Isn’t

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Bitcoin has garnered much mainstream media coverage in recent months which is the natural reaction to its meteoric ten-fold rise this year. The digital currency’s rise to about $11,000 today was met with awe, and then it quickly fell by 20% in a matter of hours, as has been widely reported. Still, bitcoin is 37% […]

Quarterly Strategy Update: Dynamic Undercurrents

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Since the start of this year, the US Treasury market is signaling a scenario of rising growth expectations and falling inflation expectations, as reflected by the various components that comprise interest rates. In this quarter’s strategy update, Portfolio Manager Steven Vannelli, CFA, explores the following: Monetary policy: We examine the demographic shifts causing people to spend […]