SCHX News and Press, Schwab U.S. Large-Cap From 08/02/22

Advanced estimates suggest real output declined for a second straight quarter in 2022, prompting many to debate whether we are in a recession and what that even means. First, note that overproduction does not mean above-trend production. Rather, it means producing more than is warrant...

We’ve had two consecutive quarters of negative GDP growth, but what’s happening under the hood? The hangover of pandemic policies like lockdowns, in addition to fiscal, monetary, and regulatory policies animated by ideology rather than sound economic principles, are bear...

Throughout recorded economic history, there have been severe economic/market disruptions caused by known and unidentified imbalances not properly addressed in normal circumstances. The present imbalances I perceive as not being addressed can be characterized by the lack of sufficient ...

The Schwab U.S. Large-Cap ETF tracks a market-cap-weighted index of the 750 largest US companies. It offers an alternative for investors in addition to typical S&P 500 funds such as the Vanguard S&P 500 ETF. This article will perform a detailed comparison of these funds in...

US gross domestic product fell 0.9% in the second quarter, the Bureau of Economic Analysis reports. The National Bureau of Economic Research has long explained that its process is more than waiting for two GDP prints to announce contraction. We can’t dismiss the possibility...

Rather than making money harder to get, the U.S. government needs to focus on the other side of the demand vs. supply equation. The Fed’s prescription is to suppress demand (borrowing and spending) by raising interest rates. In March 2022, the Federal Reserve tackled inflat...

Today’s GDP reading officially shows two quarters of negative GDP. A lot of this talk about recessions ignores the fact that housing is a big slow moving sector. The Fed appears to be pivoting towards a more dovish stance and that’s part of why stocks have been bounc...

While this is a technical recession, the Fed is correct to say we aren't in a "real" recession yet since unemployment is still falling and consumers are still spending. Consumers remain under real pressure as inflation puts the squeeze on spending power while the plunge in equity mark...

The headline number of 95.7 was a decrease of 2.7 from the final reading of 98.4 for June. "The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—fell to 141.3 from 147.2 last month." - Consumer Confidence Surve...

In all fairness to the Atlanta Fed, some of last week’s statistical releases indicate an economic slowdown, but at a very slow pace, nothing like the rapid contraction that accompanied serious contractions in 2008-9 or 2020. Russia’s Gazprom last week notified major cust...