The stock market’s valuation is based on nothing concrete; when Q2 earnings come out, it will be a wake-up call for investors. Unless the Fed comes out with a groundbreaking stimulus plan, this rally will run out of juice. Government stimulus isn’t enough to make people spend amid job uncertainty. The U.S. stock market has …
Over 4 million individuals have not been able to pay their mortgage payments for 30 days or more. The housing market may see additional selling pressure as pressure on homeowners mount. Renters have also been unable to afford payments, putting additional risks on leasers. A staggering 4.3 million people have been unable to make their …
Dow Jones Industrial Average (DJIA) futures plough higher again on Monday morning. The Federal Reserve reported a huge drop in demand for its emergency liquidity services – a sign that financial markets are now stable. New York moves to phase two of re-opening, brining 300,000 back to work. Stocks are flying yet again in the …
Stocks are having their worst day in weeks. The drop is being blamed on “concerns” for a second wave of the pandemic. But a struggling labor market, skyrocketing valuations, and a retail investor frenzy are the real catalysts. Stocks are taking it on the chin today. And according to the talking heads, the narrative is …
The stock market is the most expensive it has been in almost two years. Earnings estimates don’t line up with current valuations, which could be a problem come Q2 reporting season. Investors are banking on a fast return to normal, but so far their optimism is supported by nothing more than hope. The stock market …
Expectations of higher stock prices fell in May, according to the Fed’s consumer expectations survey. Consumers see a mean probability of less than 50% that stock prices will be higher a year from now. Consumer sentiment about the stock market is dipping as analyst sentiment grows stronger. When the U.S. stock market started to rebound …
The stock market rally is, by all measures, completely absurd. Traders have become drunk on stimulus and it’s causing irrational investing. If the free money faucet turns off, the stock market is in for a rude awakening. Is there anyone out there who believes the stock market’s impressive rally is somehow rooted in reality? Civil …
Hertz stock doubled in during trading Friday. The recently bankrupt rental car company’s rally is a risky bet against Tesla. And it’s a sign of stock market froth. The Fed’s $3 trillion balance sheet expansion may have something to do with it. The stock market has continued to rally on expectations that the pandemic would …
Stocks of zombie corporations are outperforming the S&P 500. A horde of companies too dead to feed their debts continues walking due solely to Federal Reserve bailout programs. This subverts the natural selection of capitalism and does not let the brave new world start clean. In the television series The Walking Dead, a virus creates …
The Fed is going scorched earth on deflation in the housing market. The Federal Reserve has never intervened so forcefully in the economy. But in the process, it’s fueling the greatest of all time asset bubbles. Someone bulldoze the statue in the Lincoln Memorial and put Federal Reserve Chair Jerome Powell there. The Fed is …