Fernando Fitch

…e to be believed, the auguries for the US and global economy are looking increasingly unfavourable. This week the yield on 10-year US treasuries fell to its lowest since late 2017, as investors bet the Federal Reserve will be forced to cut rates to underpin the US economy. The global bond rally came as a range of central banks adopt a dovish stance in the face of slowing growth in Europe and parts of Asia — as well as the US itself.

Consider two countries — Germany and Greece — before they shared the Euro. Both countries produce and export goods. Suppose German firms get 5% more productive than Greek firms, meaning they can produce the same quantity of goods at 5% lower cost. There are two options (and obviously a range of options in between) for German firms. One is to pay workers more, which will restore the cost of German goods relative to Greek goods. German and Greek goods will once again be competitive on the global market because increased German productivity has been offset by increased German wages.

Invitation Homes receives a 4.3 out of 5 from its tenants in internal surveys, the company said, adding that its business model depends on keeping people happy so that they’ll stay in their home, reducing turnover. Tuomi told me that as Invitation acquires more homes, it adds employees, stimulating local economies.