Author: Money Mechanics

Wine isn’t for everyone, whether for investment or to imbibe, but it certainly has its fans. Sales hit a rough patch in popularity in the early 2020s, however, which has been largely blamed on a declining baby boomer generation available to embrace it. This isn’t to say that you wouldn’t want to put some of your investment dollars into wine, but there are some considerations. Key Takeaways The wine industry has hit a rough patch in the 2020s, but it’s expected to recover after 2031.Investment options include direct bottle purchases, wine funds or managed portfolios, vineyard ownership or shares, and…

The U.S. Bureau of Labor Statistics released its July 2025 Inflation report on August 12th, 2025. The report showed that Annual Inflation was unchanged at 2.7%.Calculated to two digits, it was  2.67% in June and 2.70% in July. So, although the BLS says it was unchanged it was actually up VERY slightly. The market responded positively with the NYSE up 226.57 points.July’s Inflation Prediction:At 2.70%, July inflation numbers came in between last month’s “likely low” and “extreme low” projections, which is about as good as we could hope for.Go here to view our current MIP projection.July 2025 Inflation Summary:Annual Inflation rose from 2.67%%…

Key Takeaways An uptick in worker productivity bodes well for the future of the standard of living in the U.S., according to a recent analysis.Automation, working from home, and a surge of new businesses have all contributed to an upswing in how much workers produce each hour on the job.Despite a generally positive outlook, tariffs and an immigration crackdown could stifle productivity. How much did you get done at work today? How everyone answers that question determines one of the most important statistics in the economy, and it’s quietly been on the upswing.Non-farm workers’ output per hour rose at a…

Donald Trump’s tariffs are roiling the global trading system. But the president’s tariff-mania is far from unprecedented in American history. The last time tariffs of this scale were in place was after the passage of the Tariff Act of 1930, better known as the Smoot-Hawley tariff. The bill sparked a trade war between America and its allies, deepening the Depression and causing the world to break up into rival blocs. The Economist’s reporting from the time offers a cautionary tale about protectionism. Senator Reed Smoot, “one of the most reactionary of the tariff Bourbons” (left), and Representative Willis Hawley (centre)…

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.U.S. stocks settled mostly lower on Wednesday, with the Nasdaq Composite falling more than 100 points during the session.The Federal Reserve indicated that inflation risks remain “considerable” due to the uncertain impact of new trade tariffs, casting fresh doubt over imminent interest rate cuts, according to the July Federal Open Market Committee minutes released Wednesday.President Trump called for the resignation of Democratic-appointed Fed Governor Lisa Cook. U.S. Federal Housing Finance Agency director William Pulte alleged in…

Current-Account Deficit Widened by 44.3 Percent in the First Quarter Current-Account Balance (Table 1 and Chart 1) The U.S. current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, widened by $138.2 billion, or 44.3 percent, to $450.2 billion in the first quarter of 2025, according to statistics released today by the U.S. Bureau of Economic Analysis. The revised fourth-quarter deficit was $312.0 billion (table A). The first-quarter deficit was 6.0 percent of current-dollar gross domestic product, up from 4.2 percent in the fourth quarter. The…

Wholesale prices rose far more than expected in July, providing a potential sign that inflation is still a threat to the U.S. economy, a Bureau of Labor Statistics report Thursday showed.The producer price index, which measures final demand goods and services prices, jumped 0.9% on the month, compared with the Dow Jones estimate for a 0.2% gain. It was the biggest monthly increase since June 2022.Excluding food and energy prices, core PPI rose 0.9% against the forecast for 0.3%. Excluding food, energy and trade services, the index was up 0.6%, the biggest gain since March 2022.On an annual basis, headline…

Key Takeaways Division I schools can now pay athletes directly under the House v. NCAA settlement, with schools sharing roughly $20 million worth of revenue with current players. Former athletes could receive settlement payments, but appeals may delay payouts for years. Current athletes should plan for taxes on these payments, while former athletes should be wary of companies offering to buy their settlement claims. This summer, a federal judge approved the House v. NCAA settlement, marking a major shift in college sports: For the first time, Division I schools can now directly pay their athletes. Under the new rules, current…

WASHINGTON, DC – APRIL 02: U.S. President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as “Liberation Day”, Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by Chip Somodevilla/Getty Images)Getty Images This morning, the Bureau of Labor Statistics (BLS) released the July inflation numbers, which were higher, as economists expected. Normally, a higher inflation rate would spark somewhat boring debates about Fed policy and consumer sentiment. This…

Key Takeaways All eyes are on Federal Reserve chair Jerome Powell, whose speech at the central bank’s annual Jackson Hole Symposium could test the stock market rally that’s lifted stocks to record highs.Deutsche Bank analysts warned in a note on Tuesday that Powell’s comments “could create uncertainty about September cut prospects.”A hawkish Powell could spell trouble for the market as a whole, but especially for rate-sensitive stocks like homebuilders and small caps, which have rallied in anticipation of cuts. Federal Reserve chair Jerome Powell is scheduled to speak at the central bank’s annual Jackson Hole Symposium on Friday, an event…