The Topsy-Turvy Economy

The financial markets are hooked on easy money, low interest rates, and growth via debt issuance. Yet, it has become obvious to some market players, economists, and maybe even the Federal Reserve’s Federal Open Market Committee (the rate setting cabal), that current monetary policy is now hurting, not helping, the economy. Of course, monetary historians […]

Investors, prepare for slower growth

From an investor’s standpoint, this has surely been a summer of discontent.  All markets appear to be too high, there is no yield to be found, and there appears to be no place to hide, at least inside current investment standards as set forth by Wall Street.  While the conventional wisdom looks at cash as […]

What ‘lower for longer’ means to yield-hungry investors

You’ve heard the expression, “We live in interesting times.” Substitute the words “uncertain,” “experimental,” or simply “scary” for “interesting,” and you will capture the feeling of many investors, especially those who have already retired or are approaching it. As I write, the media tells me that, by almost any standard measure, equity valuations are too […]

Why Helicopter Money and Unconventional Monetary Policies Won’t Help the Economy

The equity markets continue to flirt with record highs while the yields on fixed income instruments are at or near all-time historic lows.  Generally, those two market movements are not compatible.  Everyone feels a high level of anxiety about the economic future.  Ben Bernanke visited the Bank of Japan in early July to help them […]

When policies are anti-growth, sell the rallies and buy the dips

The equity markets are generally forward-looking. That’s why you have price movements that seem incompatible with the latest economic (backward-looking) data. The equity market today, as seen through the eyes of the S&P 500, has been flirting with all-time highs while the economic data indicate that the economy continues on feeble legs. So, just as […]