We Have Markets That Aren’t Really Markets Anymore
We have central banks playing a leading role in the support of higher and higher stock prices (and lower and lower bond yields). We have markets that aren’t really markets anymore.
To Infinity and Beyond — Corporate Profits Beating Global GDP Growth
There IS an underlying law of economic gravity at play here. Companies can’t infinitely grow earnings faster than GDP growth. You can cut costs (lower wages through automation)…
Too Much Liquidity with No Place to Go — New Stock Market Highs
Money market funds tend to invest in short-term government Treasury bills and corporate debt
How I Learned to Love Lockdowns — Buying Growth Stocks
You have a binary outcome in a world of financial repression. You can go full ‘risk-on’ and buy the most aggressive growth stocks and momentum plays…
The Knowledge Virus — Too Much Cash in The System
Market participants (mostly money market funds that invest in short-term corporate and government debt) parked US$756 billion in cash with the Fed overnight.
The Omega Variant — Central Bank Money Printing
The soaring levels of government debt and central bank money printing — not to mention private sector leverage — virtually guarantee it. We’re closer to the end than the beginning.
Memorial Day — Monday is Memorial Day in the US
Monday is Memorial Day in the US. It’s a public holiday commemorating the death of all those who served the US in uniform. In that sense, in spirt, it’s a lot like ANZAC Day.
The Unsafety in Numbers — Fires of Inflation Are Spreading
Financial markets got a lot more interesting (and volatile) last week, with the release of inflation measures in the US and China. From raw materials to finished goods, the fires of inflation are spreading…
The Real Money Hustle — Money is a Serious Business
Real money requires real resources. But in a fake world, with fake money and fake news, the race is on to redefine what money is — so that it is literally no object…
These are Extraordinary Times — Financial Repression is Already Here
If you don’t believe financial repression is already here, you haven’t been paying attention. But the good news is that there ARE money moves you can make…