U.S. Wage Growth Continues to Disappoint

In the graph below, aggregate corporate profits after accounting for changes in inventory valuation and capital consumption (blue line) is plotted against the real median wage of U.S. workers (red line). The term 'real' in this case indicates that the data has been adjusted for inflation. Historical evidence over the past 40 years suggests that, despite increases in productivity and corporate profits, wage growth continues to disappoint. The situation begs us to ponder how anĀ economic…

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Moment of Truth for the U.S. Dollar

The U.S. Dollar is on the ropes and its next move is critical... Investors have an important decision to make -- one that is largely tied to the overall confidence in the equity markets. Should stocks tumble, money will inevitably flee to safety. This means currencies of perceived stability (USD, YEN) and commodities where the underlying asset stores value (gold, platinum, precious metals, etc.) should appreciate in value. In the Dollar Index (DXY) chart below,…

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