Do Central Banks’ Negative Rates Work in Europe? Not really. Actually, negative rates distort economies and leave little room to maneuver in the next recession. Secondly, extremely low interest rates are also bad for European…
QE to Infinity and Beyond? Analysts say the Fed will resume and buy “just” U.S. Treasuries next year. The Fed’s balance sheet should rise past its historic peak. Image: Bloomberg – Cartoon: Hedgeye Risk Management LLC
S&P 500 Index Earnings per Share (EPS) Forward Estimates, Next 12 Months, Since 2018 The consensus S&P 500 earnings for the next 12 months has increased from $173 to $175. See why The Risk Of…
The Amount of Outstanding Negative-Yielding Debt since 2009 Investors are paying governments for the privilege of holding their bonds and are losing so much money in real terms. Raising interest rates in the future could…
50 Percent of US Stock Fund Assets Are Invested in Index Funds Until active equity funds drop fees, the flow into passive equity funds will certainly continue. But could markets become inefficient if everyone buys index…
The Trade-Weighted Broad US Dollar Index Hits the Highest Level since 2002 A strong dollar leads to wider trade deficits, and this is a headwind for US exporters. A strong dollar can also hurt emerging markets.…
What’s The Risk Of An Earnings Recession in 2019? Maybe Less Than You May Think US-China trade uncertainty is the enemy of growth, and the impact of tariffs will weigh on corporate profits. But it…
Is Tesla Stock a Good Investment? Ouch, Tesla stock is down from $377 to $196 in just 23 weeks. Tesla is not a tech company, but a car company. It isn’t making as much money…
The Dow Jones Has Been Down the Past 4 Weeks in a Row Keep in mind that the Dow Jones hasn’t been down 5 weeks in a row since 2011. Image: Ryan Detrick, LPL Financial…
World Exports Are Contracting – May 2019 Nowadays, exports of goods and services represent 29% of global GDP and trade tensions are causing a contraction in world exports. Image: First Eagle Investment Management
As China Trade Fears Intensified, Big U.S. Companies Tightened Spending A drop in capital spending in S&P 500 companies is a bad sign for the U.S. economy. Image: The Wall Street Journal