About Bob Cremerius

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So far Bob Cremerius has created 304 blog entries.

What Happens During Manias?

2021-05-04T17:22:27+00:00April 20th, 2021|Categories: INVESTMENT|

Executive Summary Since 1990, the monetary base has grown from around $300 billion to close to $5.5 trillion. (See first graph) The massive amount of liquidity provided through the Federal Reserve Bank’s (Fed) monetary policy has helped fuel enormous bubbles in all types of assets. One of [...]

Is the Wedge Still Growing?

2021-05-04T17:22:43+00:00April 13th, 2021|Categories: INVESTMENT|

Executive Summary The first graph below illustrates the growth in corporate profits versus the S&P 500 Index.  The point of sharing this is not to predict a stock crash, but rather to display the embedded risk in the market.  Historically market cycles have consisted of both an [...]

What Would a Rise in Mortgage Rates Do to Housing?

2021-05-04T17:25:03+00:00March 9th, 2021|Categories: INVESTMENT|

Executive Summary The current housing market appears to be booming with continually escalating prices. Substantially aided by the Fed’s low interest rates, rising home prices are disconnected from the Consumer Price Index, a proxy for inflation (see second graph below). The fifth graph in The Details demonstrates [...]

How Does the Crowd Exit All at Once?

2021-03-02T16:40:32+00:00March 2nd, 2021|Categories: INVESTMENT|

Executive Summary The quote below is from Warren Buffet’s long-time business partner, Charlie Munger, and speaks to the recent irrationality in the stock market.  One valuation metric used to evaluate the price of a stock is the price to earnings ratio.  Historically, the average P/E ratio for [...]

Are Policymakers Flying Blind?

2021-02-16T18:02:23+00:00February 16th, 2021|Categories: INVESTMENT|

Executive Summary Policymakers in the government and the Federal Reserve put an emphasis on the message to the public that they have everything under control – even before the pandemic. By lowering interest rates and providing unprecedented government stimulus, they are flying blind in hopes of supporting [...]

When Will the Economy Get Back to Normal?

2021-02-09T16:39:15+00:00February 9th, 2021|Categories: INVESTMENT|

Executive Summary Many Americans hope the COVID 19 vaccine will help return life to normal.  And as the title asks, what will be the economic normal?  The decade prior to 2006 produced average real economic growth of three percent or more; however, the past decade has averaged [...]

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