The Bitcoin bubble is second only to the Tulip bubble. The current digital currency bubble is the second biggest bubble in recorded history.
The weekly Saturday night financial show attempts to predict market direction for the week ahead by looking at a variety of technical and fundamental indicators.
With Q3 earnings season in the rear-view mirror, we can now say that earnings growth is slowing. Over the last 4 quarters we have growth rates of: 2.1%, 6.5%, 6.5%, and 4.1%. Federal Reserve rate hikes and quantitative tightening are causing earnings growth to slow as you can see in the chart below. The grey Read More »
The Trump Administration is following the playbook of Reaganomics. As part of its Reaganomics program, the Reagan Administration cut back sharply on the regulation of everything from monopoly and oligopoly to pollution and product safety, important elements that likewise effect the aggregate supply curve. Let’s review the microeconomics of monopolies and oligopolies. Adam Smith’s Perfect Read More »
Put on your macroeconomics hat and hold on for a wild, brain-stimulating ride as Lance dives into the GDP formula and explains the President’s monumental speech at the Asia Economic Summit in Vietnam last week.
Of course Democrats want huge tax increases. Tax increases cause expanding deadweight loss and ultimately contract economic growth. Democrats clearly want to crash the economy while President Trump is in office to make sure that he’s a one-term President only. President Trump pushed out on Twitter today that congressional Democrats “want MASSIVE tax increases & Read More »
SUBSCRIBE OR SIGN IN
The SPHB:SPLV ratio chart is showing a compelling setup for small cap stocks. The SPHB:SPLV ratio chart tracks high volatility (high beta with tendency to be small cap) stocks to low volatility (tendency to be large cap) stocks. This ratio chart is another barometer for the risk on versus risk off trade. In a risk Read More »
Republicans have officially given up on trying to pass a border adjustment tax to even the playing field with our trading partners. The Retail Industry Leaders Association celebrated the news and said they are now ready to get on-board with the President’s tax reform. The retail sector, and stock traders, won a significant victory Thursday Read More »
The dollar did a big drop today after the FOMC announcement left rates unchanged. The Federal Reserve said the reduction of the balance sheet will begin relatively soon. I think relatively soon means September 2017. The Fed seemed to indicate that “gradual” policy tightening will continue. The Federal Reserve will begin winding down the stimulus Read More »
Corporate bond yields spreads are falling which suggests there is a low default risk. Using Fred and Moody’s we can chart the spread between lowest investment grade (Baa) and equivalent 10-year Treasury yields. Corporate Bond Yields Spread Chart Corporate bond spreads are at there lowest point since 2008. This suggests that markets are pricing in Read More »
It’s funny how the same contrarians who said the stock market was going to crash because it was in a bubble back in 2011, 2012, 2013, 2014, 2015, and 2016, are still saying the same thing today. Seriously, there are no contrarians still left today that trade. This 8 year bull market has killed them Read More »