Global Demand Dearth Costs $1.2 Trillion In Lost Wages, $3.7 Trillion In GDP
Recently we’ve seen quite a bit of evidence to support the notion that global demand has never recovered from the 2008 crisis and further, that central banks’ collective efforts to create demand via ‘the wealth effect’ and other similarly elusive concepts have failed. This is apparent virtually everywhere you look, from depressed global trade, to a […]
AAPL Butterfly Trade For June
Apple Inc. (AAPL) has continued to remain in its trading range for over a few months, and this trade is playing for it to remain in this range (125-133). Arguably, I am late to the game betting for consolidation but I think the consolidation will continue at least for a few more weeks. I have […]
Can We Really Trust Nike’s Stock Price?
Introduction One of the most common mistakes that I see common stock investors make is failing to formulate the important distinction between a company and its publicly traded stock.There are many great companies out there with fabulous stories surrounding their wonderful businesses. As a result, it can be very easy to fall so much in […]
The End Is Near, Part 5: Paying Dividends With Borrowed Money
<< Read: The End Is Near, Part 1: The “War On Cash” << Read: The End Is Near, Part 2: Everyone Piles Into Junk Bonds << Read: The End Is Near, Part 3: Corporations Are The Ultimate Dumb Money << Read: The End Is Near, Part 4: Peak Trophy Asset Inflation A recent Goldman Sachs report explains where this […]
Despite A Short-Term Dip, Prospects For The KOSPI Remain Strong
On April 27, I had argued on an article written for Seeking Alpha that the KOSPI stock market index had significant room left to run based on general stock undervaluation, coupled with prospects of lower interest rates and rising exports. The KOSPI had been trading at a level of 2150 on April 27 but has since lowered to under 2100 before […]
Yields & USD
The 10 vs. 2 year yield spread is up slightly and the 30 vs. 2 is up significantly. This continues a trend of late that brings the yield curve further into the discussion as it has for weeks now refused to go back down (this time). Here is the live 30 vs. 5 showing a […]
LA To Gradually Hike Minimum Wage To $15 By 2020; Already Weak Growth Prospects Just Got Worse
In yet another triumph of stupidity over common sense, a triumph that is sure to cost jobs, slow growth, and encourage more robotic replacement of workers, Los Angeles’ Minimum Wage on Track to go up to $15 by 2020 The Los Angeles City Council on Tuesday backed a plan to raise the city’s minimum wage to […]
“One Of These Things Is Not Like The Other”
It is very rare to see Dow Industrials hitting new highs as Dow Transports prints new range lows… one of them is wrong here… Click on picture to enlarge h/t Brad Wishak As Dana Lyons recently noted, …while not all divergences mark tops, many tops are marked by divergences. So it has been the case with […]
Secular Trends In New Residential Building Permits And Housing Starts
Yesterday we reported separately on the latest residential building permits and housing starts in the government’s report for April data, courtesy of the Census Bureau and the Department of Housing and Urban Development. Despite the fact that both are monthly SAAR series (seasonally adjusted annualized rate), they are exceptionally volatile and subject to extensive revisions. Thus it is foolish […]
