Carnegie Market Blog

Higher Rates and the City of Champions

Posted by Brent Luce on Nov 2, 2016 4:31:34 PM

Mobile Internet Usage

For the first time ever, mobile internet usage has surpassed desktop internet usage.  In my house, I think this happened about four years ago.  The most interesting part of this chart to me is how fast things have changed.  Just five years ago, almost all internet usage came from desktops.  This rapid change means (among many other things) that every business should have a mobile-friendly website.  In the U.S. at least, I bet that most work-related internet use still comes from desktops/laptops and that most personal use comes from mobile.  MORE:  Mobile vs. Desktop in the World of Millennials  


Internet Usage Worldwide chart

Inflation

Interest rates have been consistently rising since July. Interest-rate sensitive stocks have been moving accordingly and inflation expectations have been increasing (chart below).  Most believe we will see another interest rate hike this year.  If we have finally transitioned into a higher rate environment, fixed-income and income related equities may have less of an appeal than they had during the long period of declining interest rates.  Many investors have been lulled to sleep with their low volatility bonds and dividend paying stocks, but many of these securities have already been moving lower in anticipation of higher rates.  MORE:  Inflation is Coming Back -- What does that mean for you? 

Treasury market gauge points to rising inflation expectations

TV Viewership

The chart below from Piper Jaffray shows the decline in TV viewing by age group.  Interestingly, people in the 50-64 year-old group have continued to watch the same amount of TV as in the past.  Every other age group has dropped dramatically, with declines rising age decreases.  This definitely has major implications on the media industry.  Coincidentally, this chart covers the same time frame as the one at the top of this blog; the big declines in both charts, however, are not a coincidence.  People are obviously spending a lot more time on their phones and tablets, and a lot less time watching TV and being on their computers.  The technological rate of change we are experiencing is astonishing, and I believe it is continuing to accelerate.  Related: NFL Ratings Plunge Could Spell Doom for Traditional TV

Linear TV Viewing Hours by Age

Cleveland

By the time you read the next blog, the Cleveland Indians will hopefully be the new World Champions.  Cleveland has obviously arrived on the sports scene, but it has also arrived in many other ways.  One way that I judge a city’s vitality is by its parking garage rates.  The picture below was taken in the first round of the playoffs:

$100 Parking for World Series in Cleveland

If this were not enough, Cleveland is now a Price is Right vacation destination.  If this is not the ultimate benchmark of a great city, then I do not know what is.

Cleveland featured on the Price is Right
Brent Luce

Written by Brent Luce

Brent Luce Senior Portfolio Manager Cleveland, OH. Brent serves Carnegie Investment Counsel as Senior Portfolio Manager. Brent manages custom portfolios for select clients and is an integral part of Carnegie’s investment selection and portfolio structuring processes. He is also author of the “Carnegie Market Blog”. Email Brent at bluce@carnegieinvest.com.

  • There are no suggestions because the search field is empty.

carnegie top 4 things 2021 version-1

Looking to hire a Financial Advisor?

Enclosed in our eBook are four questions we recommend you ask any prospective group you review. Plus, you'll learn: 

  • The difference between fiduciary and suitability standards
  • Learn how some advisors may not be required to work in your best interest
  • Be aware of various types of hidden costs
  • The importance of third party custodians
  • The difference between fee-based and fee-only

Download Now, It's Free

Recent Posts

Subscribe here for monthly blog updates!