Category Archive: Finance, No picture
Why Imports Are Crucial To GDP Growth
In recent posts, Pierre Lemieux and Scott Sumner refuted a common but mistaken idea: that because gross domestic product can be calculated by taking national expenditure data (i.e., the “C + I + G” part of the equation) and adding the value of exports while subtracting the value of imports (the “X – M” in said equation), imports reduce GDP. This […]
The Stealth Reason Why The Stock Market Keeps On Rising
The US stock market continues to rise because it is increasingly dominated by shrinking “availability & supply”, All three stock “Pools” are shrinking in a stealth & unappreciated fashion, There is an increasing potential for a “Minsky Melt-Up” based on an even stronger US dollar (i.e. An Emerging Market Flight to Safety), Expect a coming […]
State Of European Banks: The ECB View Vs Reality
The ECB would like you to believe the European banking system is sound and banks are better regulated. They aren’t. Ten years after Lehman there are numerous statements from bureaucrats, academics, media and others that banks are now better regulated, more solid and liquidity problems vanished. Reader Lars from Norway Emailed this assessment today. […]
This Week In Stocks – Saturday, Sept. 15
Our analysis of the S&P 500 (SPX) is for stocks to continue with some minor upside before the declining phase of the current market cycle begins. Our minor support zone is between 2860-2880. Yet once we hit late September, we see the potential for much higher risk, which should last through the end of the […]
GBP: Sterling Continues To Benefit From A Lack Of Bad News
by Nick Cawley , Analyst Fundamental Forecast for GBP: Bullish STERLING (GBP) TALKING POINTS: Brexit continues to dominate although hard UK data surprises to the upside. Bank of England remains cautious as talks progress. We remain bullish on Sterling going into next week after the latest jobs, wages and GDP data all came in better-than-expected this week, while a […]
The Continuing Endgame For Bretton Woods II And The Role Of Gold
“Under this system [Bretton Woods II and the petrodollar], the U.S. is running massive current account deficits to be the source of export-led growth for other countries.To fund this deficit, central banks, particularly those on the Pacific Rim, are buying up dollars and dollar-denominated assets.” Daniel Drezner “The inability of global leaders to address global […]
10 Years And 10 Lessons From The Financial Crisis
10 years. It feels like yesterday. Then again, sometimes when I look at the economic data it feels like it never even happened. Whether you feel like the crisis is a distant memory or still lingering I think we can all agree that these kinds of big events serve as important lessons for understanding how […]
Week In Review: $1.4 Billion In China Life Science Deals And Financings
Vivo Capital, a US-China healthcare investment firm, closed a new private equity fund at an oversubscribed $635 million (see story). The Vivo Opportunity Fund will invest in US and China small to mid-cap public life sciences companies with novel products in development. Vivo raised $750 million for its previous PE fund in 2015, and it closed a $100 […]
This Is Why Interest Rate Fears Will Resurface
Interest rates impact every facet of the economy – home sales, retail, auto, business loans, student debt, and more. As interest rates continue to creep up will fears hit the stock market? During this crucial weekend video newsletter update we look at that possibility and what trading opportunities you could take to profit or hedge […]
Despite $1 Trillion Market Caps, A Stock Market Crash In 2019 Is Likely
The Tech Stocks Pose the Biggest Risk of a Stock Market Crash in 2019 Despite market cap success to the tune of a respective trillion dollars for Apple Inc. (Nasdaq: AAPL) and Amazon.com, Inc. (Nasdaq: AMZN), there’s a real risk of a major stock market crash. Pundits reveled in Apple’s achievement, Amazon’s a little less enthusiastically – it was […]
