Stocks Have A Great Week Despite Subpar Labor Report

Great Week For Stocks The main reason investors have been cautious heading into this week was because of the potential for a North Korean flare up. It turned out that the market decided to ignore the North Korean risk as the last week before Labor Day, when most people go on vacation, was fantastic. The…

7 Of The Top 8 Firms Are In Tech

The stock market ended the month of August positive making it the 10th straight month the S&P 500 was up on a total return basis. In the past two days, it seemed like someone wanted the market to be up for the month as it rallied just enough to achieve that goal. The last North…

Do Millennials Not Have Jobs?

Are Millennials Hurting? One of the biggest worries some people for the stock market is that baby boomers retiring will take money out of the stock market causing valuations to fall from their current lofty heights. Obviously, the next generation will put money into stocks eventually, but in the next few years there will be…

Hurricane Harvey To Impact GDP

We are in a new world this year in terms of the economic recovery. This year we’ve seen earnings beating the estimates from before the bar was lowered a few weeks before the reports. For the past few years we saw estimates lowered and the lowered estimates beaten. It was a game of misdirection as…

Employers Can’t Find Qualified Workers?

The chart below is blurry, but it still gets the job done in terms of showing you the most important trend in the labor market. The chart shows the spread between those finding jobs ‘plentiful’ vs ‘hard to get’ according to FactSet. As you can see, the ratio is above the level prior to the…

Stocks Can’t Be Stopped By Natural Disaster Or Nuclear War Threats

Stocks Rally Despite Headline Risk The stock market has been amazingly resilient in the past few days as the S&P 500 is only down about 1.2% from the all-time high despite the increased threat of nuclear war with North Korea and the devastating storm in Texas which brought catastrophic flooding. It’s possible 500,000 homes were…

Houston Houses Affected By Harvey Don’t Have Flood Insurance

Hurricane Harvey To Have A Major Economic Impact The flood in Houston is going to be catastrophic to the city’s economy. Houston is the 4th largest city in America, so this will show up in the August and September economic data. Don’t get fooled by the theory that this will create more demand, making it…

Global Dovishness Spurs Growth, But Has Consequences

Global Dove Let’s look at the state of the global central banks. As you can see from the chart below, most central banks’ last action was to cut rates. That’s likely because in 2015-2016 the global economy was very weak as evidenced by the decline in trade. Trade has rebounded despite the risk of protectionism.…

Draghi Gives A Political Speech

Draghi & Yellen Deliver Nothing Besides Yellen, Mario Draghi, the ECB president, spoke at the Jackson Hole event. There was some intrigue into whether he would give detail on the ECB’s bond buying program, but that will be pushed off into October as he didn’t give any monetary policy updates. The dollar continued to selloff…

Yellen Talks Tough On Regulations At Her Last Jackson Hole Event

In my last article, I discussed the possibilities of Yellen’s Friday speech at Jackson Hole. I was accurate in my expectation of what her speech would be on as the main point of her speech was to defend the regulations put in place since the last financial crisis. This was the speech of someone who…