Does It Matter Who Is Federal Reserve Chairperson?

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Reading Time: 4 minutes In looking at who Trump will pick as Federal Reserve chair we often hear that he is against regulations and likes low interest rates. It’s important to acknowledge that having a low interest rate policy is a terrible idea. Not even the most stringent dove at the Fed would claim…CONTINUE READING

Is The Market Underpricing This Risk?

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Reading Time: 5 minutes With S&P 500 earnings at record highs, the labor market as measured by the unemployment rate seemingly strong, and inflation as measured by the CPI moderate, it’s not surprising to see the S&P 500 near its all-time high. With solid fundamentals currently in place, one of the issues which can…CONTINUE READING

Importance Of 2018 For Future Monetary Policy

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Reading Time: 5 minutes In terms of President’s appointments, the Federal Reserve chairperson doesn’t get much news coverage relative to the importance of the job. The amount of coverage is similar to what Treasury Secretary gets even though that position is far less important. That’s because of two reasons. The first is monetary policy…CONTINUE READING

Corporate Debt Wall Could Be A Problem

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Reading Time: 4 minutes Many times, the reason a financial crisis isn’t seen beforehand is because it is disguised by optimistic assumptions which become unreasonable. It’s difficult to determine which assumptions are unrealistic because the trends take years before they bubble over. For example, over-eating for a month probably won’t have negative effects on…CONTINUE READING

Swiss National Bank (SNB) Ruins The Market

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Reading Time: 4 minutes In the age of central banking the normal expectations for financial markets and monetary policy need to be thrown out the window. Investing is a process of constant change. In fact, the purpose of markets is the discovery of fair value. To be a good investor, you need to reinvent…CONTINUE READING

Stock Market Indicator Showing Strong Buy

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Reading Time: 4 minutes Credit markets are the lifeblood of the economy, therefore accurately determining the conditions and trends is vital to understand future probabilities. Some people in the doom and gloom category of the investment landscape like to say that debt is always bad. The reality is more nuanced than that. Debt that is…CONTINUE READING

What Is The Federal Reserve Thinking?

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Reading Time: 4 minutes The Federal Reserve has gone through with three rounds of Quantitative Easing programs. There are many opinions about what this policy has done to the economy and stocks. Interestingly conventional wisdom from bullish traders seems hypocritical. During QE 1,2, and 3 which was combined with zero percent interest rates, traders…CONTINUE READING

Everything Wrong With The Stock Market

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Reading Time: 5 minutes In this article, we’ll review the factors which are moving stocks prices and explain why valuations are where they are. The important concept to understand is that the explanation for why a metric is at a certain level, doesn’t imply that the metric will continue its trend. You must understand…CONTINUE READING

Are We Experiencing Another Tech Bubble?

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Reading Time: 4 minutes The current bull market is one of the biggest and longest in history. Although the rally started with a broad base of support, the latest movement in the rally has been concentrated in the top 5 tech stocks. At the end of bull markets, indexes are pushed higher by leaders,…CONTINUE READING

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