Michael Farr

Trying to draw a definitive conclusion about the direction of the economy is becoming increasingly difficult. The incoming economic data is ambiguous at best, which may provide justification for the Fed to continue its aggressive support for the recovery. Of particular concern to investors trying to read the tea leaves...

Three months ago, on January 18, our Market Commentary discussed whether or not it might be time to increase exposure to bank stocks. We noted that following several years of dramatic underperformance, the sector had begun to outperform. We suggested that the recent strength in the sector had been due...

Recent economic data, from employment to manufacturing to consumer spending, suggest an economic recovery is firmly afoot. This type of economic revival was certainly not a foregone conclusion just two or three years ago. Amid the renewed optimism, it is easy to forget that we recently endured the worst recession...

Spring arrived early for 2012. In spite of the predictive powers of Punxsutawney Phil, the cherry trees along the Tidal Basin next to the National Mall are in full bloom -- weeks ahead of their "normal" cycle.

Spring brings us out of the dullness of a barren...

The media were all abuzz following yesterday's much-anticipated sell-off in stocks. Prior to yesterday's 1.5 percent drop, the S&P 500 had gone 44 straight days without a sell-off of 1 percent or more -- the longest such streak since May, 2007. Over the same time, the VIX index, which provides...

The Dow experienced a triple-digit sell-off yesterday, which has been somewhat of a rare occurrence over the past few months. In my estimation, the sell-off was triggered not only by the delay in the Greek deal (which certainly was a factor), but also commentary coming out of the Fed. The...

Apple's better-than-expected earnings have driven a $25+ rally in today's share price to over $446 per share. This move carried Apple's market capitalization, currently at $416 billion, past Exxon's to become the most-highly valued corporation in the world. Thanks to the big move in shares of Apple, the...

Some of our favorite clients were in the office today to discuss their financial and investment strategies. At the meeting we were asked if we found the improved economic conditions encouraging. Our answer was an absolute YES. They went on to ask if we thought that the recovery would continue,...

Optimism over the economic recovery has increased over the past week as several economic indicators have come in better than expected. First, and perhaps most surprisingly, Housing Starts and Building Permits rose sharply in November. While the increases were mainly due to sharp increases in volatile multi-family housing projects, investors...

In Europe and the United States, debates over deficits, austerity, and intervention are being conducted in several languages, but they share the same essential elements. Moreover, the debates all pose fundamental questions that cut to the core of government's role in any society. What is a government's responsibility for the...

The decrease in the unemployment rate to the lowest level since March 2009 will hit the nightly news tonight and morning papers tomorrow, and it will feel good. Anything to improve sentiment is obviously good for the economy. Consumer confidence is still very low, and this news will...

MF Global is the latest dastardly culprit of Wall Street's arrogance and excess. Less than three years after a systemic collapse of the U.S. financial system that led to taxpayer bailouts and plummeting share prices, Wall Street stalwart John Corzine drove the company off the cliff. Under Corzine's direction (we...

President Obama was in Australia this week where he criticized European leaders for their "lack of will." The phrase seems an odd rock for the leader of a country living in its own large glass house. The Super Committee, or "Joint Select Committee on Deficit Reduction" as it is officially...

Economists are increasingly lowering their expectations for economic growth as the European saga continues and the U.S. struggles with high unemployment, weak income growth, and a fledgling housing market. Earlier this month, the Federal Reserve lowered its 2012 forecast for U.S. economic growth to a range of 2.5%-2.9% from the...

Equity markets worldwide are gyrating due to ongoing uncertainty in Europe. On Wednesday, the yield on 10-year Italian bonds soared to a new euro-era high of 7.25 percent. Many economists view the 7 percent level as a critical threshold, beyond which Italy's debt service costs will become crippling. This development...

Wall Street has rallied on news of the European Union's latest intervention, an initiative that many are hoping will avert both a Greek default and an EU banking crisis. Key to understanding this most recent legerdemain is that it has temporarily avoided a chain reaction of insolvency yet solves precious...