I am a fan of durable goods. Meaning, I enjoy spending my money on things that will last at least a year. Particularly, I enjoy shopping for watches and pens (the kind that last indefinitely). This watch pictured here was made in 1987 and made it into the hands of Eric Clapton two years later for a price of $513,688. Mr. Clapton wore it on occasion and sold it in 2012 for $3,650,000. It had appreciated a modest 8.65% during those 23 years and allowed Eric Clapton to retire comfortably. Well, that and selling almost 150 million albums over the last 50 years of course. This watch would be considered a durable good.
Durable Goods Orders are tracked like every other economic statistic, and this month they declined 4.0% from the previous month, which was also down 2.8% from the month before. So though our society is still spending plenty of money, it’s for disposable stuff that won’t last. That is a sad commentary.
Speaking of commentary, the 8x per year Fed meeting concludes today, after which Chair Yellen will read a prepared statement over-viewing the current status and future direction of the economy. It is anticipated that during that statement, she will state that the Fed is leaving its Cost of Funds rate at 0.375%.