In a new economic letter recently released by the Federal Reserve Bank of San Francisco (h/t @dvolatility), a pair of researchers forecast a price-to-earnings ratio for the S&P 500 of a mere 8 in the year 2025 (due to retiring baby boomers’ waning risk appetites). This compares to 17 at the end of last year. Let’s take this…
Written by Gary The morning session has remained in the red sea-sawing sideways in what has become a quiet session of sorts. By noon the averages were off -0.3% and volume was falling. Session likely to remain down and trend sideways. Our medium term indicators are leaning towards sell portfolio of non-performers at the midday and the session…
The crisis in Germany is brewing at a rapid speed. There is no country that has suffered the pains of Russian sanctions in the West more than Germany because the Russian market has compensated Germany in the past years, covering up many problems of the German economy from the euro crisis. As the economy has turned…
Most income investors will know at least a little about Master Limited Partnerships more commonly referred to as MLPs. Most MLPs are tied to the transportation of energy products. They collect royalties as the energy product moves through their pipeline (this is a very common structure). Fundamentally, the movement of MLPs should not be vulnerable…
“If you repeat a falsehood long enough, it will eventually be accepted as fact.” In the financial markets and economics it is a common occurrence that the media and commentators will latch on to a statement that supports a cognitive bias and then repeat that statement until it is a universally accepted truth. When such…
Source: Wikimedia Dear Diary, “Has anyone seen my charger?” was probably the most common question heard in the Bonner household this Christmas. Everyone has an electronic communication device of some sort. Every device has a charger. And at any given moment its owner can’t find it. iPhones and chargers all look alike. If you are in…
Narrative, we have a problem. What is billed day after day as ‘unequivocally good’ is entirely not good for Alaska (oh and Texas and Pennsylvania and…) as with oil prices dropping, AP reports Alaska Gov. Bill Walker has halted new spending on six high-profile projects, pending further review. With oil taxes and royalties expected to represent nearly 90%…
To heck with facts… and the scientific method. 1. February. We don’t need no stinkin’ scientific method. From A Random Thought on the Scientific Method: In response to this post, climate model skeptic Rick Stryker writes (in ALL CAPS no less): JUST BECAUSE A MODEL DESCRIBES THE EXISTING DATA DOESN’T MEAN THAT IT WILL DESCRIBE DATA THAT HAS NOT BEEN…
One industry which reflects the same trend that we see in crude oil, the massive deflationary vortex of economic decline, is none other than the wine industry. The wine industry is also suffering from a major glut and here too wine producing real estate has peaked in France back in 2007 and is not scheduled…
On the stock market people often want to make as much money as they can and as fast as possible. In most cases this is a very difficult assignment, however. Sooner or later a moment will come that will wash away all your nice profits like they never even existed. Long term investors are still…
