Perspectives Blog

When the QE tide recedes, focus on what is revealed

Robert McConnaughey, Director of Global Research | January 6, 2014

…nking system to finance future growth and the revolution in energy production as a major input to overall increased cost-competitiveness. On the risk side of the ledger is the lack of adequate progress around fiscal reform or entitlements, the challenges of growing profits off of a base of historically high margins, and equity valuations that, while not excessive, leave far less margin of safety than we saw at this time a year ago. Our European t…

The truth about April’s budget surplus

Marie M. Schofield, CFA, Chief Economist and Senior Portfolio Manager | May 16, 2013

Surge in tax receipts allows the U.S. Treasury to report the largest budget surplus in five years. What is good for the Treasury and the budget presents some burden on households; taxpayer refunds are down 3.5% this year versus last. Recent deficit improvement may give a false sense of security and delay critical entitlement reforms. Washington finally had some good news to report, specifically on the budget deficit. The Treasury reported a $1…