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Austerity Measures

As it stands, the U.S. national debt has skyrocketed to above $17.4 trillion. With this year’s budget deficit expected to be around $500 billion, we’ll be at a national debt of $18.0 trillion in no time. In fact, a $30.0-trillion national debt is not out of the question…

In its monthly statement of receipts and outlays for the month, the Treasury Department reported that the U.S. government incurred a budget deficit of $107 billion for the month of March 2013. (Source: Department of the Treasury, April 10, 2013.) This monthly budget deficit was a result of…

I will be first to say that this is a difficult market to play, and it’s certainly full of stock market risk. On one hand, the Dow Jones Industrial Average eclipsed a new record last week when the blue chips index surged to an all-time new record high…

As debt-infested European countries are struggling with implementing austerity measures, American taxpayers should buckle up for a taste. The U.S. economy is on its way to austerity measures, but not by choice. According to a study done by investment research firm Morningstar, Inc., 21 states in the U.S.…

The stock market bounced back from an oversold position (although a week later than I thought it would), but there aren’t too many reasons why it should go upward. For the most part, earnings growth is expected to be flat in the fourth quarter. The eurozone is in…

The stock market has more downside over the near term, but it’s likely to hit a floor as soon as price-to-earnings (P/E) multiples are no longer excessive. In many ways, the current pullback is the selloff we didn’t get after the third round of quantitative easing (QE3) was…

Buy stocks; buy, buy, and buy a little more—this is exactly what the stock market, currently controlled by a bear in sheep’s clothing, would like you to do. Signs of a stock market reversal are clear and should be taken seriously by my readers. The S&P 500 is…

The stock market is on the third leg of a repeating pattern that began about three years ago. The spectacular stock market decline that began in 2008 hit a bottom in March 2009, and then promptly recovered. July 2009 saw a significant recovery in share prices, followed by…

With the recent corporate earnings release from Apple Inc. (NASDAQ/AAPL), many investors are unsure how best to trade the stock. Before we get to that, let’s take a closer look at the corporate earnings the firm posted. The common thread in the disappointing corporate earnings release from Apple…

As I have been warning in these pages, corporate revenue growth within the global economic slowdown is going to be very hard to come by for the remainder of 2012. So far, about 25% of all S&P 500 companies have reported their corporate earnings for the second quarter.…

This week, we have renewed fears that the financial crisis in Europe is worsening by the day, leading to a continued lack of investor confidence. Ten-year bond yields in Spain are surging to record interest rates of 7.6% on news that additional regions within the country are requiring…

The eurozone is on shaky ground. European Union leaders will be meeting on Thursday to begin an emergency two-day summit as the region’s leaders attempt to localize and corral the European debt crisis. Spain has formally requested emergency funds to help save its fragile banking system. It is…

Since the financial crisis hit in 2008, central banks around the world have enacted unprecedented expansive monetary policy that has been extreme and unusual. (In simple terms, they’ve printed money like never before.) The hope was that by lowering interest rates to record lows and printing money, economic…