These charts summarize what the landscape looks like: Sector Breakdown of liquid stocks beating the S&P500 on a 3-month basis Average 3-month return of Market Beaters by Sector Performance in various timeframes 3 of the Best Charts These are three assets with some of the cleanest price performance in the pack. HE – Hawaiian Electric […]
Landscape of Market Beating Stocks Read More »
Are you waiting for home prices to undergo a massive correction before buying your first – or next – property? If so, stop. I know, logically, it makes perfect sense. There was a massive run-up in home prices during and after the pandemic, unaffordability is at an all time high, surely these astronomical prices have
Waiting for Home Prices to Crash? Stop Read More »
Summary Rates Review The US 10-year Treasury yield has dropped by half a percent since April, which has driven most of the fall in mortgage rates. US 10-year Treasury 4.28 30-year Fixed Rate Mortgage 6.77 10y-mtg spread 2.49 Fed Repo, Fed Funds 5.30 ; 5.33 3-month Treasury Bill 5.314 Money Market Savings 0.66 Source: Wall
Markets and the Economy – July 24th 2024 Read More »
The “US-Saudi petrodollar deal ends after 80 years”, reads one article from India Today. Another, from NASDAQ, claims that the “U.S.-Saudi Petrodollar Pact Ends after 50 Years”. And FX Street says “The Petrodollar is Dead and That’s a Big Deal”. Summary: The most consequential aspect of the Petrodollar Pact Theory is that a political agreement
The Myth of the Petrodollar System Read More »
I apologize for the cliché, but this is simply the best way to describe the current condition of markets and the economy. Here’s what I mean. Markets look good right now Volatility in both the stock and bond markets has fallen near the lows of their three-year ranges. In other words, investors are seeing little
Storm Clouds on the Horizon Read More »
Remember February 2022? Russia invaded Ukraine, the United States government and its partners in the G7 froze $300 billion of the Russian Central Bank’s assets. Commodity prices soared. Many analysts – like Zoltan Poszar at the now defunct bank Credit Suisse – predicted that this would trigger the end of the “dollar system”. That is,
The commodity bull market increases demand for dollars Read More »
I’m answering followers’ questions I didn’t get to in my last interview on the Monica Perez Show. Question: In another econ/finance podcast (yes they are a dime a dozen), Jacob Dreizin says: “let me just tell you, there’s not gonna be any financial crash… The people who were listening to Peter Schiff in 2008/2009, where
Follower Q&A: Is there an imminent debt crisis? Read More »
Earlier this week, a prominent finance and macroeconomics educator – George Gammon – posted a video in which he suggested a different way of defining whether or not the economy is in recession. Here's The Real Recession Indicator They Don't Want You To See https://t.co/SNqoJsRH64 — George Gammon (@GeorgeGammon) April 29, 2024 It can be
The Gammon Indicator of the Business Cycle Read More »
Jamie Dimon’s annual letter to shareholders, released April 8th, mentioned the word “inflation” 21 times. That would’ve been unimaginable five years ago. Last fall he said in an interview that interest rates could hit 7 percent. In his annual letter he told shareholders that his bank is preparing for a rate environment of anywhere from
JP Morgan CEO warns of 8 percent rates, here’s how investors can profit Read More »
The US, along with most countries in the world, is currently in a rate hiking cycle that began in March 2022. Since the Fed began its rate hiking campaign, the response of the stock market has been surprising to many, myself included. All financial assets are valued in virtually the same way: by calculating the
How does the stock market “normally” respond to rate hikes? Read More »
