Summary: Investment commentary these days overflows with mentions of bubbles. The concept is vital to understanding our economy yet encrusted with myths in the minds of most investors. This post cuts through those to the known history and theory of bubbles. As usual with economics, this gives us clues about the future – but only … Continue reading Playing The Bubble Game: Investing In The 21st Century
Summary: For the past year I've warned that the economy is slowing. For the past three months I've warned that a recession is coming. Now let's consider the likely effects, and how you can prepare. The odds of a stock market crash are high. Are you at or near ground zero, to be hurt by … Continue reading Effects Of The Coming Market Crash On The Economy – And Perhaps On You
Summary: Corporate profits have rising to an amazingly large share of our national income, powering the stock market while GDP and household income lag far behind. This has played a large role in shaping the New America of the 21st C. What caused this rise? What might reverse it? See my column at Wolf Street … Continue reading Corporate profits are the market’s foundation, shaping a new America
Summary: Next is this series about the the boomers' third financial bubble is this by entrepreneur Mark St. Cyr, describing how current events in Silicon Valley show the early signs of dreams shattering, events that precede a crash. Crying Towels: Silicon Valley’s Next Big Investment Op by Mark St.Cyr • From his website 14 October 2015 … Continue reading First signs of dreams shattering in Silicon Valley
Summary: Nothing shows how America's reins are held by the 1% than our out-of-control corporations, enriching their executives at the cost of the future of their businesses -- and ours. Here's another status report on this sad but fixable story. The Q2 Buybacks Report by FactSet is, as usual, sobering reading. During the 12 months … Continue reading While we sleep, corporate execs strip-mine America
Summary: Again the US stock market skates on the edge of an abyss, this time without the Fed holding a safety net. We've seen this combination of peaking economy and overvalued stocks; it never ends well. Too bad we don't learn from history. But I suspect we'll soon get another opportunity. The Fed is like … Continue reading The stock market gives us its 2 classic warnings. Will we listen?
Summary: There is an exception to Saturday's post, which said that a stock market crash would have only minor economic effects on America. Just as an oil crash hurts oil producing regions, such as Texas, a stock market crash hurts areas that produce stock certificates. Printing this "paper" is the most profitable part of the … Continue reading Who will get hurt from the next stock market crash? Not just investors…