The AI Gold Rush: How Data Centers Could Reshape the Economy
Trading Perspectives: An Economic Podcast
Investment in new technologies and the necessary infrastructure to support them is helping to fuel the economy. Is this a good or bad long-term development? Why are so many businesses building data centers? Why is electricity, not chips, becoming the biggest constraint? Who really wins economically: utilities, construction, industrials, regional economies, tech tycoons, or someone else? What is the environmental impact of data centers? In this week’s Trading Perspectives, Sam Clement and John Norris discuss the AI-driven data center boom, its impact on...
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Housing Affordability? Yeah, right.
Trading Perspectives: An Economic Podcast
The housing market has been relatively depressed. However, a new home seems to be out of the reach for many Americans. Higher interest rates have been an impediment to the housing market, as they make monthly mortgage payments that much more expensive. The inventory of lower-priced or entry level homes isn’t great enough for the demand, arguably keeping prices higher. The old real estate agents’ mantra holds true: “location, location, location.” Between economic conditions and local laws, the housing market can be very localized. What impact will reduced levels...
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Is the Iran Conflict Old News?
Trading Perspectives: An Economic Podcast
Have investors moved on from the conflict in Iran? What would it take for it to matter again? Have markets already priced out the Iran risk? What has the market's reaction taught us about investor psychology? What would force investors to pay attention again? Are markets being complacent or correctly assessing the risks? Has the "buy the dip" mentality become so entrenched that geopolitical shocks no longer scare investors? What is the biggest takeaway from the conflict for investors? In this week's Trading Perspectives, Sam Clement and John Norris discuss why investors have largely...
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Is the World Cup Really Good for the Economy?
Trading Perspectives: An Economic Podcast
The World Cup is a massive global undertaking every 4 years. Is it really worth it? The World Cup will bring fans in from all over the globe. What do you think will impress them the most, both good and bad? The prices for World Cup tickets, especially for ‘key games and/or games,’ is objectively high. Is the most popular sport in the world available only to the rich? Economic consultants estimate the tournament could generate billions in economic activity. How reliable are some of the more optimistic predictions? The World Cup might be great for host cities, but...
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Can You Spell AI Without B-U-B-B-L-E?
Trading Perspectives: An Economic Podcast
There are some similarities to the ‘dot.com’ bubble of the late 1990s. However, there are some significant differences too. U.S. businesses have spent a lot of money on AI, and will need to see some form of return on this investment. What and when will this be? Is the sector expanding too much and too rapidly? How much longer can the economy continue to engender/foster/finance this growth? What will the eventual ‘endgame’ look like as it pertains to investing in AI? Are we in a bubble or not? Or is it not that easy? In this week's...
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Will Europe Ever Be Europe, Again?
Trading Perspectives: An Economic Podcast
In economic and military terms, Europe, as a whole, has had a pretty tough go of it since the Financial Crisis of 2008. While still a major player in global affairs, the data suggests it might not carry the same weight it did previously. From essentially being equal partners with the U.S., in many ways, it now seems to have taken a lessor role. How did this happen? Was it economic? Demographic? A differing opinion on what were once ‘shared values’ with the United States? A decline in overall military strength? Or some combination? In this week’s Trading Perspectives, Sam Clement and...
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What's So Great About the Jobs Market?
Trading Perspectives: An Economic Podcast
Since the Federal Reserve has a dual mandate of price stability and full employment, investors tend to focus on the inflation and jobs reports. Just how many jobs is the economy creating? What does that mean for future monetary policy and economic growth? How will that impact my investment portfolio? However, recently, the jobs data has not been quite as robust as it had been coming out of the worst of the pandemic. But why? Has the economy cooled considerably? Is Artificial Intelligence to blame? Is corporate America hard-hearted? Or is something else to blame? In this week’s Trading...
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Maduro Is Gone. Now What?
Trading Perspectives: An Economic Podcast
The U.S. military recently arrested Venezuelan President Nicholas Maduro on a slew of drug-related issues. However, was Washington’s goal really Maduro? Or was it access to Venezuela’s massive oil reserves? Also, what message does this recent action send to other international leaders? And, finally, what is the ultimate definition of success for the United States in this instance? In this week’s Trading Perspectives, Sam Clement and John Norris discuss the recent abduction of Nicholas Maduro, and what it might mean for geopolitics.
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Why EVs Might Not Be Easy
Trading Perspectives: An Economic Podcast
This week, a major American automaker announced a significant write-down on its investments in electric vehicles (EVs). Does this mean the company overinvested or simply invested too early? Are American consumers fundamentally resistant to EVs? Or have various governments pushed EVs faster than the sector, market and infrastructure can truly support? In this week’s Trading Perspectives, Sam Clement and John Norris discuss the current turmoil in the domestic EV sector and make some predictions about what the future may hold.
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Does the Definition of Poverty Need to Change?
Trading Perspectives: An Economic Podcast
It seems an increasing number of Americans are finding it harder to see "the light at the end of their financial tunnel." Everything costs more, and the necessities of life have increased in number. It seems the cost of living is rising faster than the cost of living it up. Everything from housing to childcare to the electric bill is taking a bigger chunk out of the household budget. This begs the question: is it time to redefine what poverty means in the United States? In this week’s Trading Perspectives, Sam Clement and John Norris discuss the recent struggles many...
info_outlineIn a recent conversation with a local federal reserve representative John made mention of how the pandemic has altered global supply chains. Many manufacturers have become all too reliant on China to be the supply house for the global economy. As we all know, putting all your eggs in one basket is generally not a good idea. Will businesses learn their lesson about becoming too dependent on one supplier?