This Week in the Economy (Feb 8)


It’s been another interesting week on the markets… There’s now a higher likelihood of near-term interest rate hikes from the Federal Reserve, which believes we’re at 4.9% unemployment in a growing economy.

Fear of even more interest rate hikes was responsible for the Friday sell-off on the markets. But we have to consider that if we were really growing, if unemployment were greatly improving, we’d see healthy consumer spending.

Inflation would be near the Fed’s 2% target… and retailers would not be struggling.

Worse, even as disposable income jumped 3.5% last year, Americans decided to save that, instead of spending it. We can see that in the U.S. savings rate of 5.5%.

It sat at just 4.5% last year…

Even the global economy is still in meltdown mode. Oil has resumed its slump on supply concerns. And Chesapeake Energy (CHK) fell more than 50% today on news it hired restructuring attorneys, too.

It’s been a bit wild…

However, despite the chaos, one of the strongest investments continues to be in commercial real estate.

In fact, despite international and domestic issues, a new report from Situs RERC, Deloitte and the National Association of Realtors believes commercial real estate activity will continue its expansion because of jobs growth and steady leasing demand.

"Historically low interest rates, especially in treasuries, combined with commercial real estate's stable prices and value make this asset an attractive investment," Situs RERC President Ken Riggs said in a release.

The full-report can be found here.

Here are some other stories impacting the economy at the moment, too.

Non-Farm Payrolls Rose by 151,000 in January 2016

Labor Productivity Decreases by 3%

8 states take a big budget hit due to falling oil prices

U.S. retail sales and Yellen testimony in focus

Citi: The Global Economy is Trapped in a ‘Death Spiral’

US Consumer Spending Flat, Savings Rate at 3-Year High

Debt, defaults, and devaluations: why this market crash is like nothing we've seen before

Why a sell off in European banks is ominous

Bank investors have suffered two lost decades

US economy slides one step closer towards a recession