Consumer Spending Continues to Rise

According to Reuters consumer spending increased by 0.4 percent in May and 1.1 percent in April. This strong consumer spending has led the Atlanta Federal Reserve to raise their second quarter spending growth expectations from 4.1 percent to 4.3 percent on an annual basis. Most would consider this good news since our economy is so heavily dependent on consumer spending. I have a major concern though. Continue reading “Consumer Spending Continues to Rise”

Passive vs Active Investments

According to Morningstar the trend is continuing as more and more people are moving their investments to passively managed funds from actively managed funds. In my opinion the reason is more than just lower fees. Humans have emotions, we panic, we get scared and we do dumb things because of it. Going with a passive fund not only lowers your fees but it takes away the risk of your fund manager making a bad decision. Over time it is hard to be perfect with every decision you make. Continue reading “Passive vs Active Investments”

Imperfect Switch to Visa for Costco

Costco has recently divorced American Express to hook up with a new partner in Visa. The issue is the transition hasn’t been smooth according to customers posts all over social media. My question is, when are any of these types of changes smooth? Look at how well the transition to EMV chip cards has gone. That has been a disaster since day one. Continue reading “Imperfect Switch to Visa for Costco”

T-mobile is at it Again

Everyone who was excited about getting free pizza for being a T-mobile customer will have to stay hungry. As it turns out sending 2 million customers (the number who’ve downloaded the app so far) running to Domino’s for free pizza overloaded the pizza chain. T-mobile has come up with dozens of ideas over the years to gain and keep customers but not all ideas have worked out and in this case it worked out too well. Continue reading “T-mobile is at it Again”

Yes to Brexit

In short, the markets got hammered today after the news that Britain is leaving the EU. It’s stunning to me how violently the markets have reacted to this news. All in all I don’t view this as a good or bad decision, it is too early to tell right now. And I’m certain if the story was about Greece leaving the EU, markets would have reacted very differently. Continue reading “Yes to Brexit”