Real Fed Funds Rate Is Very Low Compared to Previous Business Cycles Today, Real Fed funds rate is very low compared to previous business cycles and well below real GDP. If history helps us to…
Why the Stock Market Valuation Matters Before a Recession? When the stock market is VERY overvalued before a recession, it tends to be VERY undervalued. Like the swing of a pendulum, or the stretching of…
Why the US Stock Market Was Overvalued by 14.2% on Oct. 1, 2018 vs. 7.7% Today? Because the value of the forecast changes over time (blue dotted line). The US stock market short-term forecast (S&P 500…
Greek’s 5-Year Bond Yields Have Fallen Below US 5-Year Government Bond Yield Which one would you choose? Greek bonds or US counterparts? This is a great example of financial market madness. Mark Twain once said,…
How’s the U.S. Economy Doing Now? The real GDP Nowcast relies on soft data such as consumer and business surveys and hard data such as retail sales and industrial production. It forecasts the growth of…
Is Trump Right to Criticize Powell? We don’t think so, because: – Interest rates are still near zero in real terms and below real GDP – The rise in Fed rates has very few visible…
What our Short-Term Forecast of the US Stock Market Has Been for the Past 12 Months? Here is what our short-term forecast of the US stock market has been for the past 12 months. This…
BlackRock Geopolitical Risk Indicator for Global Trade Tensions The recent decline of the indicator suggests that investors may be more complacent about the risk and impact of trade conflicts. Source: BlackRock Investment Institute – Global…
“The Individual Investor Should Act Consistently as an Investor…” – Ben Graham Quote of the day: “The individual investor should act consistently as an investor and not as a speculator.” –Ben Graham
Is Inflation Dead? Is this cover of Bloomberg Businessweek a contrarian indicator? Remember that dinosaurs evolved into birds over 50 million years. Do you think we will have to wait 50 million years for inflation to…
The Value vs. Growth Differential Has Never Been So Extreme The Value vs. Growth differential has never been so extreme, even during the Great Depression and the Dotcom bubble. Chasing growth usually ends badly! Image:…