ESG underperformance will be the strategy’s eventual undoing.
MMT Policy (Modern Monetary Theory), the grand experiment, was tried following the pandemic-driven shutdown of the economy.
Basic economics says that companies can only set prices at a level where the current supply will meet demand. Moreover, looking at prices in a vacuum is also very misleading because it doesn’t account for changes in the firm’s input or operating costs.
The “Bullwhip Effect” has gotten the media’s attention as of late. However, the causes, effects, and consequences to the market and monetary policy are not well discussed.
The “Fear Of Missing Out,” or “F.O.M.O.” is a centuries-old behavioral trait that began to get studied in 1996 by marketing strategist Dr. Dan Herman.
An earnings recession is coming as the Fed hikes rates which accelerates an economic recession.
“HODL,” an original misspelling taken on as a badge of courage by cryptocurrency investors, spread to “Meme stocks” during the runup in 2020 and 2021.
An oil price and energy stock price reversion may be starting.
NFIB signals a recession is coming…again.
An “economic hurricane” is coming.
Investors are terrified.
Social Security has a problem.
When will the bear market end?
Will the Fed pause its rate hikes as markets correct?
Is a “lost decade” ahead for markets?
High inflation has captured the headlines as of late particularly as CPI recently hit the highest levels since 1981.
The disinflationary impact of Fed policy on equities is coming.
Investing during a recession can be a very difficult, and often dangerous, prospect.
Investor sentiment has become so bearish that it’s bullish.
“Don’t be bearish.” That was the message delivered by a Wall Street Journal article in August 2021.
A bull market in bonds is set to return with a vengeance as the Fed once again makes a policy mistake.
Buying stocks is easy; the hard part is knowing when to sell.
Recession warnings are clearly on the rise. Much of the initial media fervor focuses on the inversion of the yield curve.
Is there a bear market lurking in the shadows?
Is it still a “bear market rally?”
The “wisdom of the crowd” isn’t always wise to follow. A recent article by Scott Nations via MarketWatch made an excellent point.
Did Goldman Sachs destroy a persistent myth about investing in stocks? Sam Ro recently suggested such was the case for the “sacred CAPE ratio.”
“Anatomy of a Bear Market” by Russell Napier is a “must-read” manuscript. Given current market dynamics, a review seems timely.
Yield curve inversion conversations are dominating the media to the point it almost sounds like the start of a bad joke.
The surge in bond yields suggests that we are nearing the ideal entry point to buy longer-duration bonds for capital appreciation and portfolio protection.
Bailouts are the root cause of the dysfunction of capitalism and the demise of free markets.
“Cash Is Trash” is a common theme as of late as inflation rages from the massive monetary interventions of 2020 and 2021.
Recession risk is rising rapidly. In fact, it is possible that we may already be in one.
The Fed’s QE is officially over.
An earnings reversion is coming.
Hiking rates into a wildly overvalued market is potentially a mistake. So says Bank of America in a recent article.
Greedy corporations are not causing inflation.
“Geopolitical Risk” could well be a reason for the Fed to slow-roll tightening monetary policy in March.
A March stock market rally is likely, but does that mean the risk of a bear market is over?
Market pullback or bear market? Such seems to be the question on everyone’s mind as of late, given the rough start to 2022 so far.
Earnings estimates are more deviated from long-term growth trends than at any point in history.
Economic stagnation arrives as expected as the “Sugar Rush" of liquidity continues to fade from the system.
A 50-percent decline will only be a correction and not a bear market.
Disinflation, and ultimately deflation, is a more significant threat than inflation over the next two years.
A Potemkin economy has lured the Fed, economists, and Wall Street analysts into a potentially dangerous assumption of economic normalcy.
Jeremy Grantham recently made headlines with his latest market outlook titled “Let The Wild Rumpus Begin.”
What if the Fed can’t hike rates? It’s an interesting question and one we delved into in Part 1 – “Fed Won’t Hike Rates As Much As Expected.”
Rate hikes will be far fewer than the markets currently expect.
“Don’t Fight The Fed.” But, unfortunately, that mantra has remained a “call to arms” of the financial markets and media “bullish tribes” over the last decade.
Passive ETFs are hiding a bear market in stocks.
