The Independent Market Observer

Risk Focus: Domestic Politics

November 20, 2019

When you read the papers and watch the news, you won’t see much about economics. With earnings season just about over and with the major economic reports looking a bit better, investors don’t have a lot of data to worry about—at least until the next set of releases. Instead, now we are worrying about politics.

Continue reading → Leave a comment

Are Politics to Blame for Waning Confidence?

October 23, 2019

I have written versions of this post before, but it is demanding to be written again. So, here we go.

Continue reading → Leave a comment

Modern Monetary Theory and the Deficit

June 14, 2019

A controversial topic currently exciting economists goes by the name of Modern Monetary Theory (MMT). While there are many ways to interpret it (as you can see from its name, it doesn’t actually describe anything), the key tenet is that deficits don’t matter. Governments that control their own currencies, like the U.S., can spend whatever they want simply by printing more money. The controversy doesn’t come from this assertion—it’s a simple fact—but from the different interpretations of what, exactly, this means.

Continue reading → Leave a comment

Is “Italeave” Greece 2.0?

May 30, 2018

First, there was “Grexit,” which was the name given to the possibility that Greece would leave the eurozone. Then, there was “Brexit,” the plan for the U.K.’s exit from the European Union, which is actually happening (at least potentially). Now, we have “Italeave,” which I think sounds better than the other contender, “Italexit.” So what’s going on with Italy?

Continue reading → Leave a comment

Waiting for the Government Shutdown (Again)

January 19, 2018

As I have been saying, things are pretty good, economically speaking, as we move into the new year. But there is one significant risk that we need to watch. I’m speaking of the pending deadline (midnight today) when funding for the government runs out. At that time, the U.S. debt ceiling extension ends, the government cannot borrow any more money, and—if Congress (including both Republicans and Democrats) can’t come to some sort of an agreement—the government shuts down.

Continue reading → Leave a comment

What Does the Alabama Election Mean for the Markets?

December 13, 2017

Yesterday’s news that the Democrats won the Alabama special Senate election, for the first time in 25 years, rattled U.S. politics. By taking the Republican majority in the Senate from 52 to 51, it reduces an already tight margin for difficult votes. By signaling that even the reddest states are now potentially in play for the Democrats, it could be a bellwether for the 2018 midterms. But what does the Alabama election mean for the markets?

Continue reading → Leave a comment

Watch Out for the Risks in Washington

November 29, 2017

As I have been saying, things are pretty good, economically speaking, as we approach the end of the year. At the same time, there are some significant risks in the next couple of weeks that we need to keep an eye on.

Continue reading → Leave a comment

Subscribe via E-mail

New call-to-action
Crash-Test Investing
Commonwealth Independent Advisor

Hot Topics

New Call-to-action



see all



The information on this website is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.

Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets.

The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. All indices are unmanaged and investors cannot invest directly into an index.

The MSCI EAFE Index (Europe, Australasia, Far East) is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of 21 developed market country indices.  

Third party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites. Information on such sites, including third party links contained within, should not be construed as an endorsement or adoption by Commonwealth of any kind. You should consult with a financial advisor regarding your specific situation.


Please review our Terms of Use

Commonwealth Financial Network®