David Stockman, former budget director for President Ronald Reagan, says “I think all hell is going to break loose,” as the result of the Trump tax cut. Past assertions indicate he expects a 40 to 70% stock market collapse, but no idea when. For Stockman it has always been about…
Investors, consumers and business owners seem to be winning on all fronts these days. Forecasts estimate 2018 dividends of $500 billion, corporate stock buybacks of over $700 billion and Mergers & Acquisitions (M&A) business of $1.3 trillion. This would be an impressive 10% of the value of the S&P 500…
Recently concern has risen over a pending low in unemployment data among other signs of a major stock market and economic top. While a bit presumptuous to assume unemployment can’t go much lower, it’s a given that when the economy peaks and heads toward a recession, unemployment will have bottomed and…
Toll Brothers stock, one of the largest home builders, is down a whopping 35% from its peak this year as housing prices keep reaching new astronomical heights. The median home price in Tribeca, Manhattan is over $5 Million. Not a problem for Justin Timberlake, but many worry that the wave…
The broad based S&P 500 and Russell Indices are hitting multi-month highs while the tech heavy Nasdaq has been reaching record peaks with regularity this year. Despite the Wall of Worry over China Trade, the Bullish behavior of stocks hitting higher highs and higher lows is becoming obvious to the masses. We don’t…
Apple became the first company to surpass the $1 Trillion market cap today, but they have no place in Trump’s mantra of “Making America Great Again”. Even Apple’s sales appear almost immune to tariffs from China or the US. In promising to bring back US Manufacturing jobs, our President’s messaging heaps an inordinate…
Everyone knows Tech has led the the stock market higher since Trump was elected and 2018 has again demonstrated strong tech leadership. The resplendent tech vanguard is dominated by the $3.3+ Trillion behemoths under the Jim Cramer acronym known as FAANG (Facebook, Amazon, Apple, Netflix and Google). The tech heavy Nasdaq is…
Almost a third of Banks are experiencing a spike in consumer credit card defaults to levels associated with recessions. While it could be a canary in the coal mine warning of a crisis rumbling through this strong economy, it may also be an errant spark by the feeble financial sisters supplying…
Awareness of the yield curve and the dreaded potential for inversion as a harbinger of recession has never been more prominent in the news. Esteemed Federal Reserve members, commercial banking CEO’s and economists have acknowledged recently that an inverted yield curve is a powerful indicator of a coming recession. The yield…
We all know intuitively that increasing demand combined with shrinking supply will elevate value. Thus esteemed economists are confounded by the “appearance” of below normal wage growth despite record demand for jobs and fewer workers available. False blame has been thrown at greedy corporations not sharing profits, at slack labor demand,…
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