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The Best of What They Said and I Read Week Ending 7/28/2019

“The Best of What They Said and I Read” week ending 7/28/2019 

Short excerpts from articles I found interesting.  I may not agree with the author and the following material is not intended as investment advice

Barron’s – July 26, 2019 – S&P 500 Hits New High as Stocks Await Fed Rate Cut – Ben Levisohn 

  • “…The S&P 500 index rose 1.7% to 3025.86—a record close—while the Nasdaq Composite gained 2.3% to 8330.21, also a record. The Dow Jones Industrial Average advanced just 38.25 points, or 0.1%, to 27,192.45, but only because Boeing slumped 8.6% after the grounding of the 737 MAX showed up in its earnings.”

  • “Clearly, a lot of optimism is built into the market, some of it deserved. Earnings this past week have been generally solid…But who are we kidding? It’s really all about the Federal Reserve. The central bank is set to lower interest rates at the end of its July meeting on Wednesday, and it would be a massive shock if it didn’t. Hopes for lower rates, which have already knocked the U.S. 10-year Treasury yield down to 2.08% from 2.68% at the start of the year, have helped propel stocks up 21%, leaving them trading at 19.8 times trailing earnings.”

The Wall Street Journal – July 28, 2019 – Turning Points – Clare Ansberry

  • “Sharon Hyman and David Demetre celebrated their 20th anniversary of not living together. They met through a Canadian dating service…The Montreal couple dated, eventually talked about living together and getting married—and did neither. He wakes up early, and is an introvert who cherishes private space. She is an extrovert, who stays up late and likes to be with friends and family.”

  • “I don’t think it would work as well if we lived together,” said Mr. Demetre, a 63-year-old retired draftsman who spends several nights a week at her apartment because it’s bigger. The only downside, he says, is the 15-minute drive.  “The assumption is that if you really love each other, you will live together. My question is ‘Says who?’ ” said Ms. Hyman, 56, a filmmaker who is making a documentary about living apart.”

  • “Couples in the second half of life are rewriting the terms of their relationships. Rather than marry or live together, many of them have separate homes and see each other several times a week, or three times a month; they often say they are highly committed to each other but want personal space and independence.  With the rise of “gray divorce,” and a doubling of the divorce rate for those 55 and older, there is a larger pool of single adults who may want a long-term partner, and want to make to it work without entangling finances or relationships with adult kids.”

  • “It’s a “new frontier in partnered relationships,” says Susan Brown, a sociologist and co-director of the National Center for Family and Marriage Research at Bowling Green State University, in Ohio.   Dr. Brown found in a survey of 2,166 adults ages 50 to 65 that nearly one-third of those in an unmarried relationship were in a committed long-term relationship but living apart—an arrangement academics often call “living apart together” and one that Dr. Brown expects to become more prevalent.”  

U.S. Global Investors - Investor Alert – July 26, 2019 – Frank Holmes 

  •  “…A rate cut is also widely expected by the Federal Reserve next week, following similarly disappointing manufacturing and economic news. The U.S. economy slowed in the second quarter, falling to 2.1 percent from 3.1 percent in the previous three-month period…The economy “started the third quarter on a disappointingly soft footing,” commented Chris Williamson, chief business economist at IHS Markit. “Manufacturers are shedding workers at the fastest rate since 2009 and service sector job creation is now down to its lowest since April 2017.”  Williamson added that companies, responding to geopolitical worries, trade tensions and expectations of slower international growth, “may look to tighten their belts further in coming months, dampening spending, investment and jobs growth.”

  • “A lot of the slowdown, of course, stems from the very disruptive U.S.-China trade war. Tensions between the two economies have hit supply chains and are affecting nearly every part of the economy, from technology to agriculture to real estate. And this week, economic research firm Rhodium Group released data showing that Chinese foreign direct investment (FDI) in the U.S. has plummeted an incredible 90 percent since President Donald Trump took office. From its peak of $46.5 billion in 2016, Chinese FDI shrank to only $5.4 billion last year.”

  • “Again, this is being felt in all corners of the economy. The Wall Street Journal reports that foreign buying of U.S. residences has dropped a record 50 percent in the past two years, from $153 billion to almost $78 billion, the smallest amount since 2013. The pullback, according to the WSJ, is driving price cuts in coastal cities such as New York, Miami and cities in California, and causing new condos to sit empty.”   

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