As 2014 began, growth expectations were very high for the U.S. economy. In fact, every year since the recession ended mid-2009, economists’ GDP forecasts have been on the optimistic side, only to be progressively cut back as the year progresses. … Continued
One valuation tool equity bulls consistently use to justify current stock valuations – as well as to argue for further multiple expansion – is by comparing bond yield to earnings yield. There is a metric known as ‘bond equity earnings … Continued
The phrase quantitative easing elicits diverse reaction. For some, QE was what saved the U.S. economy post 2007/2008 crisis and boosted both housing and stocks. For others, all it did was create this huge asset inflation, and further widen the … Continued
The euro has been in an incessant rally mode since July 2012, and particularly since July 2013. This has surprised a lot of observers as this has come in the face of what in ordinary circumstances could/should have resulted in … Continued
One of the common themes that we so often hear is that there is a lot of dry powder still left to push stocks higher. Bulls have been steadfast in holding on to their gains. Yes, there were sell-offs in … Continued