News That Matters 
“PIIGS” we are informed in the current Wikipedia entry “is a pejorative acronym used to refer to the economies of Portugal, Italy, Greece and Spain. Since 2008, the term has included Ireland, either in place of Italy or with an additional I.” With apologies, I am joining the ranks of contributors to such august pu…

Are U.S. Stocks “Scared Enough” Yet?

I want to make sa few points briefly.  First, if you haven’t, please read Dr. Davis’ discussion of our economic data two posts below this (or click HERE).  He documents that economic times remain difficult, in line with the polling data I have frequently referred to.  He also points out how difficult it is to […]

Yields Say Stocks Are Cheap


The valuation argument for holding stocks over bonds is getting stronger. Not only do earnings favor stocks, but so do dividend yields. And if that wasn’t enough, yields on the benchmark 10-year Treasury note fell to 1.53% today-the lowest level since at least 1945. (The yield was 1.58% …


As discussed before, risk management, whether in banking or among regulators and consumers tends to “fight the last war”. The “riskiest” asset class in people’s minds is generally the one that got the most attention in the previous down cycle.


Reinforcing our observations in recent comments, the latest batch of economic statistics indicates an economy that is slowing down significantly. Today alone we have seen disappointments in first quarter GDP, weekly initial unemployment claims, the Chicago ISM and the ADP monthly payroll number. This follows on the heels of laggard recent numbers f…

Asian Markets, Euro Slide

Asian stock markets slid, extending last month’s large declines, as China’s manufacturing sector slowed sharply in May, pushing down the euro and Asian currencies. Japan’s Nikkei dropped 1%.


Modern economies operate on fiat monetary systems with an accent on plural. Anyone who takes a look at policymaking decisions around the global economy will soon observe that there seems to be substantial differences in the ability of policymakers to determine macro policies… why? In this post I will seek to provide some answers.

Q2 Earnings Preview … Still Not Good

Click to enlarge: Factset – Earnings Insight, May 25, 2012 Analysts Begin To Take Down Q2 Estimates; Double-Digit Growth Still Projected for Q4 During the month of April, there was little change to the estimated earnings growth rate for the second quarter. On March 31, the estimated earnings growth rate for Q2 2012 was 6.2%. […]