As widely noted the fiscal deficit is over $1 trillion for the first time since the financial crisis. The total debt is in excess of $22 trillion and the markets are suggesting that such amounts are not of any significance. ...
2019 has not unfolded as anyone had expected. One year ago consensus predicted at least two more interest rate increases, a 10-year yielding around 3.50%, and markets generally flat to down. ...
Bloomberg writes over 1000 ETFs have been closed with 97 closing thus far in 2019. The reason...
Markets were relatively quiet yesterday. Little or no attention was focused on the weekend events in Hong Kong, Iran, Iraq, China (“reeducation camp” unrest), North Korea, and Israel. In years past all individually would have generated considerable market reaction. ...
Equities were encouraged by headlines suggesting the US and China are “coming down to the final stages” of a trade deal. Trade sensitive tech shares again led the advance. Treasuries traded nominally lower. Oil ended about 2% higher. ...
Is a tectonic change about occur on Wall Street? The only consistent profitable trade is long mega sized technology companies. As noted yesterday, Bloomberg writes mega sized growth is priced for 25% annual profit growth for the next decade, twice the rate of...
Bloomberg writes at the start of this quarter the top flying US stocks—aka mega sized technology—was priced for profit growth of a staggering 25% every year for the next decade. The actual rate over the past five years was more like 12%. ...
Where to? Bank America writes 30% of the S & P 500 earnings growth over the past five years is the result of share repurchases funded by debt. Many times I have commented about the proliferation of debt for non-economic purposes. BofA...
I am ardent believer in the phrase it is not what one does but rather why one does it. I am also an ardent believer in the philosophy that norms and means are significant and are important to understand where one might be going...
Equities and oil advanced and Treasuries plunged as the odds of a trade deal continue to rise. Bloomberg writes that the 11 basis points rise in the 10-year is a “three sigma” event ...