Article Index
Bear Market Rally

Optimism towards key stock indices is increasing each day. The U.S. stock market “seems” to be a safe place, and it’s common to hear stock advisors suggesting we are going higher on key stock indices. Key stock indices like the S&P 500 are making fresh highs. Google Inc.…

The third-quarter corporate earning season has begun. And as I have been predicting, earnings growth just isn’t there this quarter. If companies in key stock indices are beating their earnings estimates, it’s because they are beating already lowered expected earnings. What’s the biggest problem with the corporate reports…

There is calm before the storm looming in the U.S. that is called the “Fiscal Cliff”—a bigger issue than perceived by the majority of the American population. A fiscal policy implemented during President Bush’s period in office, which included cuts in taxes and increased government spending, is set…

In spite of weak corporate earnings within the S&P 500 list companies, the market continues to grind its way higher. However, this chart shows the S&P 500 could be forming what is referred to in technical analysis jargon as a “Triple Top Reversal Pattern.” The below is a…

The U.S. Midwest is in the midst of the most severe drought in 50 years. The brutal conditions are destroying corn, wheat, and soybean crops, sending the prices of many agricultural commodities rocketing higher—another knife cutting into consumer confidence and consumer spending. Since June 1, corn prices are…

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.…

When the governor of Utah signed a bill that made gold bullion and silver bullion legal tender in the state last March, he had no idea of the groundswell he was going to start. The Utah Sound Money Act outright flies in the face of the fiat money…

San Bernardino, with a population of 209,000, has become the third California municipality to declare bankruptcy within the last few weeks. The budget deficit that San Bernardino faced was $46.0 million and its money was gone, leaving the council little choice but to declare bankruptcy, especially in an…

For June, the U.S. created 80,000 new jobs, well below economists’ forecasts of 100,000. The unemployment rate remained steady at 8.2%. (Source: U.S. Bureau of Labor Statistics, July 6, 2012.) When looking within the U.S. job numbers for June, of the 80,000 new jobs created, 25,000 were in…

Buried under a huge budget deficit with pension obligations it had no way of honoring, Stockton, California could not reach a deal with its creditors and so will be forced to declare bankruptcy within days. The mayor of Stockton, Ann Johnston, felt she had no choice. Before reaching…

Some believe the stock market is trading at a low price/earnings (P/E) multiple, meaning stocks are historically cheap. The P/E multiple takes the current market price per share of a company or index and divides it by the corporate earnings per share of that company/index. Historically, P/E multiples…

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…

You've heard the news… Economists (except for this one) were looking for 150,000 jobs to be created in the U.S. in May, which would have reflected moderate economic growth. Instead, only 69,000 jobs were created in the month of May (source: Bureau of Labor Statistics)—a huge job numbers…

Here’s the bottom line on the crisis in Europe: The only way the European debt crisis could be put temporarily aside is if the European Central Bank (the “ECB,” our equivalent of the Federal Reserve) prints money. Since Germany is the main voice within the ECB, printing is…

It’s been four years in a row now that some economists have been calling the U.S. housing bottom without success. In any depressed market, there are always pockets of opportunity and some areas that will do well. In the housing market, I have no doubt that foreigners have…

The U.S. durable goods report is an important gauge of economic growth. It focuses on big-ticket items that are purchased by businesses and consumers, which are meant to last at least three years; a sign of business and consumer confidence. In April 2012, the headline new U.S. durable…

I know it sounds crazy, but it’s true. Investors are paying the U.S. Treasury to hold their money in exchange for participation in expected rapid inflation. Treasury Inflation Protected Securities, more commonly known as TIPS, are bonds backed by the U.S. government that protect against rapid inflation. TIPS…