Tag Archives: collapse
Why Bonds Are Behaving Like Risky Assets
Since 1976, there have been eight years in which the S&P 500 declined. Bonds softened the stock market losses every time. When stocks went down, bonds went up. Since 1987, Alan Greenspan, and the Greenspan put, made sure of it. Yet, this time is different. Over the first nine months of 2022, bonds and stocks have fallen in tandem. And as stocks have fallen, Fed Chair Powell has hiked interest rates. Continue reading
Facing Down a Wrath of Biblical Proportions
An enterprising entrepreneur did a comedic graphic of Federal Reserve Chairman Jerome Powell captioned: “IN JPOW WE TRUST.” You may have seen it. The image shows Powell flamboyantly wearing a preacher’s robe and making an esoteric hand gesture with his right hand. His face is grimacing like he’s passing a kidney stone. Continue reading
How Central Planners Sow Seeds of Economic Ruin
U.S. money printers have recklessly sown dollars in fruitless places over the last 50-years. They’ve squandered opportunities for greater economic growth by sprinkling debt based money into fields with little to no potential for productivity. Continue reading
Finding Opportunities in a Bear Market
“I can calculate the motion of heavenly bodies, but not the madness of people.” The remark was made by Sir Isaac Newton in 1720 upon losing £20,000 – a substantial sum at the time – speculating on South Sea Company stock. The madness of people, as Newton painfully found, is incalculable. It defies logic. Runs on emotion. And is best observed from a safe distance. Continue reading
