Archives
Categories
The price is right, is it??
US Stock Market capitalisation / GDP tells us what? (The grey zones are recessions.)
New Gold Standard?
Russia’s Ministry of Finance proposes to create a new international standard for the precious metals market – the Moscow World Standard (Moscow World Standard, MWS), as an alternative to the standard of the London Bullion Market Association (LBMA). It proposes to “put a specialized international exchange of precious metals with headquarters in Moscow”, using the […]
Is a recession inevitable?
(hat-tip to Colin Twiggs) The Fed has some catching up to do… …but it won’t take much to send the 3-month rate above the 10-year rate, which historically, has been the precursor to a recession.
The Impact of Quantitative Easing
This 7-minute video by Daniel Lacalle (https://youtu.be/B4yZjKBwHdE), explains what we can expect as a result of the massive Quantitative Easing consequent to the COVID_19 pandemic…
Where are the handouts going?
In Australia… …and in the USA
Bubble, Bubble… Toil and Trouble…
PEmax eliminates distortions in the price/earnings multiple caused by sharp falls in earnings during recessions. It uses the highest trailing earnings rather than simply the most recent earnings. This provides a better estimate of future earnings potential than using more recent results during a market downturn. The current PEmax of 26.93 in the graph above, […]
Biden’s First Spending Blowout
From the WSJ Editorial, 16 January 2021: …“With interest rates at historic lows, we can not afford inaction,” President-elect Joe Biden declared Thursday night. He wasn’t kidding as he outlined a $1.9 trillion Covid spending plan, which comes on top of the $900 billion Congress appropriated last month, and the $2.9 trillion in the spring. […]
An Old Foe of Banks Could Be Wall Street’s New Top Cop
From WSJ, 16 January 2021, by Paul Kiernan and Scott Patterson: Gary Gensler [who ran the Commodity Futures Trading Commission from 2009 to 2013] is expected to be Joe Biden’s pick to take over the Securities and Exchange Commission. ‘He will do things that are controversial.’ …The finance industry has thrived under the Trump administration’s […]