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Big Banks

Bank Stocks Could Be Sizzling Next Year Higher interest rates could clip returns for equity investors in 2016. However, one industry is poised to profit: bank stocks. Savvy investors could be poised to make a fortune in the banking sector. Let me explain... The stock market has been…

It’s finally over… The quantitative easing programs initially started by the Federal Reserve six years ago are (for now) history. In its statement on October 29, the Federal Reserve said, “Accordingly, the Committee decided to conclude its asset purchase program this month.” (Source: “FOMC Statement,” Federal Reserve, October…

Six years ago this month, in the midst of the Great Recession, Lehman Brothers, one of the most well-known investment banks in the U.S. economy, filed for bankruptcy. At the time, Lehman’s bankruptcy sparked widespread worries…and the U.S. financial system teetered on the verge of collapse. For those…

A 1962 Ferrari 250 GTO Berlinetta has set a new record selling for $38.1 million at an auction in Pebble Beach, California. News of the sale was all over the Internet and made it into major newspapers like The New York Times, The Wall Street Journal, and the…

The burning question that’s facing economists like me today and that will only be answered in the future: did creating $3.0 trillion in new money out of thin air really make things better or worse for America? My personal view, as expressed in these pages, is that the…

I have been saying this for a while: You can’t have a housing recovery unless actual home buyers are involved. We are very far away from seeing the housing market reach its 2005 highs…and as time passes, it becomes clearer that this generation may never see them again.…

To say the very least, 2013 was an interesting year for gold bullion. The precious metal’s price surprised gold bugs and declined 24%. As 2013 progressed, we heard calls for the yellow metal to fall even lower in price. The stocks of gold producers were slammed. Equity research…

When it comes to love, we often hear the phrase, “Beauty is in the eye of the beholder.” Well, the same could be said for the stock market. Many investors look for the companies that deliver consistent results and satisfy the number-crunchers on Wall Street. While I belong…

To see where the U.S. housing market is headed, we really need to look at what real home buyers—those who are planning to stay in their home for the long term—are doing. Institutional investors, who came into the housing market in 2012 and bought massive amounts of homes,…

As I often harp on about in these pages; economic growth occurs when the general standard of living in a country gets better. You can’t say an economy is improving when a significant portion of the population is suffering. You can’t claim there’s economic growth when the poverty…

Central banks around the global economy are involved in a race that will not end well. Of course, I’m talking about the race to the bottom of currency devaluation, which is being achieved through the printing of more and more paper money backed by nothing. Almost weekly, I…

Can it be true? The U.S. Department of the Treasury has reported that for the federal government’s fiscal 2013 year, which ended on September 30, 2013, the U.S. government budget deficit was $680 billion—the smallest budget deficit in five years. (Source: Bureau of the Fiscal Service, October 30,…

The Federal Open Market Committee (FOMC) decided this week to keep quantitative easing and easy monetary policy going. The statement by the Federal Reserve said, “To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary…

Back in early August, I turned negative on the big banks and suggested that a bearish double-top was forming on the Bank Index chart. At that time, the Bank Index was trading at just over 65, as you can see on the chart below. (Read “Four Important Stock…

While I avidly follow the actions of central banks to see where the gold bullion prices may be headed next, when I look at them today, their actions are speaking louder than words. Central banks have pretty much stopped selling gold bullion, which is very important. In 1999,…

Companies in key stock indices have started to report their corporate earnings for the third quarter of this year. Not surprising, they are weak and show signs of stress. According to FactSet, up until October 4, 90 companies in key stock indices like the S&P 500 issued negative…

Income is the largest factor when it comes to determining changes in the consumer spending. Unfortunately, personal income is declining in the U.S. economy—not a good indicator; no matter how anyone tries to spin it. In the first eight months of 2012, the average change in real personal…

Gold bullion isn’t getting much respect these days…and that’s perfectly fine with me. The Goldman Sachs Group, Inc. (NYSE/GS) says the precious metal has a risk of going below $1,000. Bank of America Merrill Lynch cut its forecast for the yellow metal as well. Its forecast says gold…

The financial crisis of 2008 was the biggest panic America had witnessed since the Great Depression. Dubbed the “Great Recession,” its after-effects linger. In fact, this is the worst post-bust recovery on record. Today, for investors, especially stock market investors, there are two camps: those who believe we…