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Interest Rates, Inflation, And Household Net Wealth

Interest Rates, Inflation, And Household Net Wealth

Economic policy in increasingly on tilt and muddled at best. Perhaps the issues of inflation and interest rates will resolve themselves and turn out to be temporary, but stable and healthy growth and inflation outcomes still appear to be a major uncertainty and investment accounts will need constant attention.

Old Policies. New Paradigm.

Old Policies. New Paradigm.

Despite the extremes in historically reliable valuation measures, we can be certain of one thing: investors don’t care. They never do at market extremes. If they did, the financial markets could never reach extremes like 1929, 2000, and today in the first place…..What’s odd is how adamant investors seem to be not only that profit margins will remain above average, but that they will not retreat even from current extremes. Have investors looked at where margins are here? They’re not just higher than the historical norm – they’re higher than at every point in history prior to the past two years. Yet Wall Street analysts describe P/E ratios as “cheap” and “reasonable” without a moment’s hesitation about the denominator.

John Hussman

Are You Prepared for a Secular Bear Market in Stocks?

Are You Prepared for a Secular Bear Market in Stocks?

This is a challenging overall negative atmosphere, but there will always be rewarding proactive cyclical opportunities to grow wealth. A Best Investor approach with careful risk management techniques provides the optimal performance in any environment. As in sport, the best performance requires having a gameplan for both offense and defense. The key to success is understanding the relationship of business cycles and financial asset classes.

Central Banks Myths And Deepening Stagflation

Central Banks Myths And Deepening Stagflation

“The way you create deflation is you create an asset bubble. If I was ‘Darth Vader’ of the financial world and decided I’m going to do this nasty thing and create deflation, I would do exactly what the central banks are doing”
Stan Druckenmiller

The Federal Reserve is now responding with accelerating rate hikes following backward looking inflation data which showed a new high this week of 9.1%. However, the forward looking markets have started reacting differently.

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