Economy

According to conventional market wisdom, there are three safe haven currencies: the Swiss franc, Japanese yen, and US dollar. It is to these currencies that investors flock whenever there is a crisis, or merely an outbreak of uncertainty, and for much of the period following the collapse of Lehman Brothers, the three were closely correlated [but that is nolonger the case as the title of this article so indicates. Let me show you what has happened of late.] Words: 670

Inflation is a significant measurement for the economic health of countries around the world but rates are often reported weeks after data is collected. To address this problem, two professors at MIT Sloan School of Management have launched the Billion Prices Project which is the first website to publish daily price indexes and provide real-time inflation estimates around the world. Words: 825

A new financial policy initiative known by the label “Financial Repression” may soon become our worst nightmare. ‘Repression’ rhymes with ‘depression’ which could be what we have to look forward to as rampant price inflation and permanently lower living standards take hold. Get ready to be conscripted into a citizen army assembled for the greater cause of saving the nation from being swamped by a tsunami of debt. Let me explain. Words: 1585

The economic news is not very encouraging these days. Everywhere I've looked, and I've looked at 10 different indicators (surveys, polls and indexes), things appear to be either down or stagnant. Let me be more explicit. Words: 1058

At present the USD is at yet another major inflection point and what it does from here will have direct implications for U.S. investors, not only asset allocation (bonds, stocks, commodities, currencies) but also sector allocation (cyclicals, non-cyclicals). [Let's take a closer look at the situation.] Words: 2102

In the past 20 years, the US economy has grown nearly 60 percent. This huge increase in productivity is partly due to automation, the internet, and other improvements in efficiency but it's also the result of Americans working harder—often without a big boost to their bottom lines. Oh, and meanwhile, corporate profits are up 20 percent. [Let me show you exactly what I mean.] Words: 550

This summer will confirm that the US Federal Reserve has lost its bet: the U.S. economy has, in fact, never left the "Very Great Depression" which it entered in 2008 despite the trillions of dollars injected... Unable to launch a QE3, the Fed will helplessly watch interest rates rise, US government deficit costs explode, the world dive into an intensified economic recession, stock exchanges collapse and the U.S. dollar show erratic behavior before suddenly losing 30% of its value. Words: 1157

Knowing where we are within the business cycle can help investors better position themselves for superior returns [because, as we all know,] during economic expansions equities typically outperform fixed income investments while the converse is typically the case during economic downturns. Current analysis of the business cycle suggests a period of slower growth ahead, not just in the U.S., but also globally, [but no signs of an impending recession. Let me explain.] Words: 834

Most economists see the latest Q1 GDP stumble as a blip, something we shouldn't worry about because the economy is still on track for recovery...[but] another way to look at it is that the economy is being harmed by monetary inflation and we are seeing massive distortions in the economy as a result of this intentional Fed policy - economic growth is stalling and industrial production, manufacturing, non-manufacturing, durable goods production, retail sales and employment is flattening-to-declining... I think this is the correct way of looking at things and, [as such,] Q1 is not a temporary blip on the road to recovery... [but another mile down the road to economic stagflation, price inflation, lower real estate prices, continuing high unemployment, a weaker dollar, higher taxes and more - much more! Let me explain.] Words: 2997

The economy can't be fixed...the old regime of general economic stability and rising standards of living fueled by excessive credit are a thing of the past... The sooner we can accept that idea and make other plans the better... [Let me explain.] Words: 1898