Executive Summary Prior to becoming the Director of the U.S. National Economic Council, Larry Kudlow hosted a financial program on CNBC where he frequently touted, “Profits are the mother’s milk of stocks.” The recent rally in stock prices pushed stock valuations to extremes last seen in February [...]

Executive Summary Many people are asking why the market is not dropping.  After all, the economy has been shut down for almost two months!  According to CNBC on Monday, the reason of the day for the market surge was news from Moderna of positive results of a [...]

Executive Summary The Federal Reserve Bank controls the very short-term Federal Funds Rate; however, longer-term interest rates tend to track economic growth.  In the second graph in The Details, one can visually see the correlation between economic growth and the yield on the 10-year Treasury Note.  And [...]

Executive Summary Recent speculation on the shape of the economic recovery has been described as a “V”, a “U” or even an “L”.  Since the drop in the stock market in March was drastic and fast, and followed by a strong bear market rally, economic speculation is [...]