Executive Summary In this missive, I will review debt levels and growth of the following types of debt: Federal, nonfinancial corporate, and household and nonprofit organizations. I will examine the rate of growth of each of these categories of debt from 1980 to present. This rate of [...]
Executive Summary This week’s market update is relatively short in words and is composed mostly of charts and graphs of various stock market valuation methodologies. It is important to note that valuation methodologies are great indicators of long-term price movements; however, they are terrible short-term indicators. What [...]
Executive Summary Since the pandemic took charge of the economy, several stimulus plans have been enacted by Congress. Each round produced a short-term economic sugar boost before settling down to zero percent growth (see first graph). The stimulus created more Federal debt. Although Federal debt has been [...]
Executive Summary This week, I want to shine a light on another financial professional that shares his insights on the economy. Our featured Guest Article this week is written by Lance Roberts at Real Investment Advice. I chose this article this week because I think that it [...]
Executive Summary Since the pandemic took charge of the economy, several stimulus plans have been enacted by Congress. Each round produced a short-term economic sugar boost before settling down to zero percent growth (see first graph). The stimulus created more Federal debt. Although Federal debt has been [...]
Executive SummaryInflation has different meanings to different people and can show up in different forms. Some insist inflation is strictly a matter of the Money Supply. Others believe it has to do with the prices of goods and services. Some believe the most important factor is wage growth. [...]
Executive Summary The Federal Reserve Bank (Fed) has been implementing QE (Quantitative Easing) on and off for over a decade. In implementing QE, the Fed purchases Treasury securities and Agency mortgage-backed securities (MBS) – not stocks. Many believe the Fed is “printing money” when purchasing those bonds. [...]
Executive Summary Anyone who has been paying attention to the residential real estate market lately is probably shaking their head. It is definitely a seller’s market. The driving factor in housing, like most markets, is supply and demand. The lack of supply, combined with other factors discussed [...]
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 [...]
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 [...]