Companies like General Electric Co. (NYSE:GEF) represent one aspect of the market that drives investors and analysts crazy. GE is what is known as a blue chip or highly reliable investment. Traditionally one could hardly do better than investing in a blue chip like GE.
When it’s a bull market, investors use a variety of strategies to make money. Some of these strategies are straight-forward examples of buying a stock at one price and selling it at a higher price. These strategies follow varying degrees of risk for investors.
While the rest of the world argues the pros and cons of the new U.S. tax law, many analysts and investors are concerned that a provision in the tax overhaul could complicate their efforts to compare a company’s earnings to its cash flow. This is important because this is how the traditional way analysts assess earnings quality.
The American Society of Civil Engineers issues a report card every 4 years on the condition of the nation's infrastructure. The most recent grade (2017) is D+. Monday President Trump proposed a new $1.5 trillion infrastructure plan including a $200 billion contribution from the federal government over the next decade designed to encourage $1.3 trillion in spending by cities, states and the private sector.
Economist, John Taylor, came up with an interest rate forecasting model that became known as the Taylor Rule in 1992. The Taylor Rule came about as a reaction to rational expectations theory models like the Phillips Curve that attempted to forecast the trade-off between inflation and employment.