The Recession Has Arrived, & with a Vengeance
For some time, I have outlined the growing softness in the U.S. and world economies. Most of the recent data is pre-virus, and are generally meaningless. The numbers we will get for March will be awful, but the worst is yet to come. An example of March’s data is from the Philly Fed. The print […]
Markets: Time to Reflect on Risk, not Return
The week ended September 7th saw a pull-back from the record highs set in late August. Perhaps we witnessed the infamous “double top” (January 26th and August 29th). It is clear that financial markets have become riskier, and, perhaps, it is time for investors to assess the risks inherent in their portfolios versus the prospects […]
Are Equities Overvalued? Are We in a Bubble?
It is a mistake to equate the two questions. There is concrete evidence that equities are overvalued, mainly due to the monetary policies of the Fed and the world’s other major central banks. And there are clearly some stocks that are in bubble land (those that have stratospheric P/E ratios). There are ongoing massive liquidity […]