Should The Fed Regulate Asset Prices?
The idea might seem crazy at first, but it follows logically from a model in which beliefs about future asset prices (‘animal spirits’) have real effects on output and employment. […]
When Will The Rot Stop?
Cramer has come up with 10 criteria that have to be fulfilled before the markets can find a bottom. While useful, we think these criteria focus too much on the […]
Peak Economy, Peak Earnings
The tax cuts produced a boom in economic growth, but the effects look set to peter out. The tax cuts also unleashed some headwinds that could gather force, like rising […]
The Market Is Not Done Selling
The situation on the ground in Italy is deteriorating fast, with growth coming to a complete halt. The debt/GDP ratio will rise further as a result of the expansionary budget. […]
Investors Keep Ignoring The Trade War
For now, it has paid off buying the dips induced by increasing trade tensions. But as the economic damage of every new round of escalation increases, one can’t count on […]
A Hot Autumn For Stocks
We see five serious dangers to markets, and each of these could strike pretty soon. A trade escalation, the first innings of what could be a more general emerging market […]
Why The Stock Market Hasn’t Buckled Under The Trade Tensions
After some wobbles when trade tensions hit the headlines, the markets seem to have regained their footing. For some, this seems odd, given the all to real potential for a […]
The Great Slowdown?
There are signs that world economic growth is slowing down, although it’s not clear whether this is just a blip or the beginning of a more lasting trend. Lower growth […]
Technology Shares Out Of Fashion?
Bank of America argues that investors should lighten up on technology stocks. We think this is way too general an approach, investors are much better off on a case-by-case analysis. […]
Chinese Investor Strike?
Macro lessons for investors part II. Some argue that the US trade deficit is simply the result of big US public sector deficits and debts (which need to be refinanced), […]