A Perspective on Market Volatility
In my last several writings, I emphasized that, after the long tranquil up market in 2017, 2018 markets would display a great deal more volatility. No doubt I was correct on that call. Today’s increased volatility could be symbolic of a healthy correction in an ongoing economic up cycle. It also could be a prelude […]
Get used to heightened market volatility
The sentiment surveys indicate that the economy continues to perform well. The underlying data say otherwise. People take their cue from the stock market when it comes to assessing economic health. And, as long as the stock market is near dizzying heights, the sentiment surveys will say the economy is doing well. The hard data […]
The Fed’s new bubble – Part 2
In part I of this two part series, I discussed the possible rush for the exits and market volatility in what I saw as a long overdue correction. The violence of the correction and the extremes of volatility that I worried about have now actually appeared. As I rewrite the introduction of this part II, conventional […]
2018 Preview and Assessment
Market valuations are high. Current consumption is being financed by debt. The housing data is mildly positive, but has been impacted by “rebuild” issues in the wake of natural disasters. Corporate balance sheets are strong and laden with cash. The world’s major economies are doing well and central banks are beginning to tighten policy led […]