Credit Growth Stalls: Bad Sign For 2018 Economy?

The rampage in stocks knows no bounds. The Nasdaq, Dow, and S&P 500 all hit record highs on Wednesday even though Apple was down on the day. As you can see from the chart below, the total returns in this bull market just passed the 1950s rally. This is now the third largest rally in…

Is Bitcoin Under-Owned?

Bitcoin Under-Owned? As we discussed in the last article, institutional investors said Bitcoin was the most overvalued security in the world. Since my last post, the price of Bitcoin has fallen below $4,000. Some of the speculation has left the market. The chart below gives you an additional way to look at Bitcoin. It compares…

Low Paid Workers Getting A Raise

A previous article mentioned how low skilled workers are seeing more income growth than middle skilled and highly skilled workers. The chart below shows this trend in a different light. As you can see, those making less than $17 an hour are seeing more income growth than those making over $25 an hour. Part of…

Q3 Earnings Estimates Fall As Stocks Soar

Chinese Economy Driving U.S. Market FactSet released its updated aggregate quarterly earnings report. They broke down firms with a large amount of Asian exposure in the chart below. As you can see, the firms with over 40% of sales in Asia outperformed those who only have 20% exposure to Asia. The group with 20% of…

Hurricanes Shouldn’t Affect Fed Policy At Meeting Next Week

European Junk Bonds Are Expensive There is a noticeable difference between the European high yield debt market and U.S. treasuries. High yield debt no longer has a high yield in Europe and America as European junk bond yields are close to the AAA rated U.S. debt. That’s because of relentless ECB corporate bond buying which…

1990s Bubble But In Reverse

Update On ECB Bond Buying A new milestone is about to be reached in the ECB’s bond buying program. There have now been 998 bonds bought by the ECB. You can see the effects in the chart below. The BB rated euro high yield bond index is now at almost the same yield as the…

AAPL Sends The Nasdaq Lower

Apple Sells Off The stock market ended Friday mixed as the Nasdaq was the biggest sore spot, falling 0.59%. As I highlighted in previous articles, Apple usually falls right before the unveiling of its new phone. The 1.63% decline on Friday added to the Nasdaq’s woes. The stock is now down 3.30% off its all-time…

Debt Ceiling Eliminated?

Debt Ceiling Issue Over For The Time Being There was yet another twist in the debt ceiling debate as President Trump’s meeting with Nancy Pelosi and Chuck Schumer has led to an additional agreement. President Trump wants to eliminate the debt ceiling completely. This has been a talking point the progressives have used for years…

3 Month Debt Ceiling Increase

Trump-Pelosi-Schumer Deal On Wednesday, the stock market rallied slightly lowering the possibility of the first 3% selloff of the year occurring this week. Those who described the selloff on Tuesday as devastating because it was the worst day since August 17th look silly because a normal day wiped half of it away as the S&P…

Cohn Is Out Of The Running To Be The Next Fed Chair

Auto Sales Weak In Beige Book The Fed’s Beige Book report was released Wednesday. That’s where the Fed gives its update on how it sees the economy now and where it might be going in the future. The key term was that there is modest to moderate growth which Steve Liesman says means 2% growth.…

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