The Economy: As has been the case for a while, economic data has been mixed. Examining the data results in the Rabbit Hole story getting curiouser and curiouser. For example, blow-out automobile sales were recently reported. But then you find that sub-prime auto loans are at all-time highs. So auto makers are moving product in the same risky way that the housing market was propped-up with sub-prime loans before the financial crisis. The economy continues to expand at a historically slow pace. But after 7-years of zero interest rates you’d expect something more. Central bankers have embraced negative interest rates without consideration to the damage being done to savers or financial institutions. Now the vaunted US consumer may be voting with his/her feet. The retail sector has been reporting first quarter earnings this week. Most have been dismal. Nordstrom missed earnings with the stock getting crushed in the after market; down 17%. Pundits are beginning to wonder if the consumer is pulling in its horns. While there are sectors that are doing well, it’s very much a case by case basis. With the current economic environment look to your specific organization and region.
Food for Thought: The Artist Formerly Known As Prince recently died without a will. He left a $250 million estate that will now be fought over for years. Absurd. Get your will done or updated. Create or update your trust while you’re at it. The Grim Reaper doesn’t respect the loose ends in your estate planning. The larger your estate the more it will draw bums and gold diggers out of the woodwork. Spare your family and your estate.
Music of The Week: Strunz & Farah’s Album “Primal Magic”