Too many wrongly assume inflation and rising rates This naive assumption is made when too much money is printed and the monetary base expands rapidly. Money velocity is weak in this debt loaded disinflationary economy and without the 2009 massive central bank money creation help deflation would have occurred. Each…
For over 4 years the consensus has been talking about a Bond Bubble that will burst sending interest rates higher as record money inflows into the safety of Bonds reverses in a tidal wave of panicked investors selling Bonds as inflation surges. Our long held assumption of a growing economy…
Debt service on corporate and consumer debt remains near record lows With a slow growing economy and record low debt service demands there is a huge pent up demand for capital expenditures and borrowing. Falling unemployment, low consumer debt obligations and eventually rising wages will allow stocks to regain their…
Oil prices over $100 are very elevated. They are actually down 40% from the 2008 peak, but given the excessive sentiment of Hedge Funds Buying Oil over the past year and producers Selling we feel the risk remains to the downside Record Bullishness by Funds and record selling by producers…
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