The idea of an impending stock market crash may seem pretty untenable right now. After all, compared to the rest of the world, the United States had the most encouraging economic, business, and financial outlook in 2014, and the same goes for 2015. But there are several key factors painting a not-so-rosy picture for the global economy and your retirement could be on the line if you’re not cautious. (More… Read More
To see where the stock market is headed in 2015, we don’t have to look much past these two important economic factors: the U.S. dollar and the economy, both domestically and outside the U.S.
Rising U.S. Dollar to Impact U.S. Equities
After the Great Recession, to drum-up sales, U.S. companies focused their attention elsewhere in the global economy. With the U.S. dollar sliding lower in value back then, American companies… Read More
Ask any professional involved in the real estate market and they will tell you that when interest rates are low, it’s a great time to buy. Lower interest rates mean higher affordability because mortgage payments are smaller.
In December of 2014, the 30-year mortgage rate tracked by Freddie Mac stood at 3.86%—the lowest since May of 2013. (Source: Freddie Mac, last accessed January 27, 2015.)
With mortgage rates in the… Read More
Simply put, there is no support or interest in buying oil at this time, and that means oil prices could realistically hit $40.00 a barrel. Oil prices that low could cripple the global economy. Let me explain…
The Decline in Oil Prices
When the West Texas Intermediate (WTI) crude oil prices initially broke below $80.00, I was thinking maybe it was overdone. Then we witnessed a break below $70.00, followed… Read More
In 2014, I was able to travel to Europe on six different occasions. I just came back from England. These trips to Europe enable me to see how the countries there are faring economically. And I can tell you first-hand—take England and Germany out of the picture, and most European countries are in an outright depression. (Not good news for the U.S. economy, but more on why it will impact… Read More
Are Conditions Ripe for a Great Depression in 2015?
It’s hard to imagine the world’s biggest economy could fall into a depression in 2015, let alone a recession. But the fact of the matter is that it’s a real possibility, no matter what the stock markets are saying.
Normally, you can look at the stock market and see it as a barometer for how well the U.S. economy is doing…. Read More
If you think the U.S. economy is marching ahead just fine by looking at the stock market, you may be mistaken. Key stock indices hitting new all-time highs don’t mean conditions in the U.S. are better. In fact, the reality of the economic situation is the complete opposite. Several indicators I follow are ringing alarm bells, but there are four indicators ringing especially loud: rising homelessness, increasing food stamp use… Read More
In the third quarter of 2014, the Japanese economy, the third biggest in the world, fell back into a recession. The country’s gross domestic product (GDP), quarter-over-quarter, declined 0.4% in the third quarter after it declined 1.9% in the second quarter of 2014. The annual GDP growth rate for the Japanese economy now stands at negative (-)1.6%. (Source: Japan Cabinet Office, November 17, 2014.)
At an annual rate of -1.6%… Read More
Ask even an amateur economist, and they will tell you this: an increasing money supply eventually leads to inflation. It’s a simple concept; the more paper money there is in the system, the less it’s worth and the less it buys.
And this is exactly what is happening in the U.S. economy. The money supply is growing at a fast rate when compared to historical averages.
Consider the chart below… Read More
In terms of stock market direction, the Dow Jones Transportation Average recently pushed through to another new record-high. The index retrenched along with the broader market in early October, but it fought back hard to just over 8,800.
Within the index, countless stocks have been doing well. Alaska Air Group, Inc. (ALK) slumped to $42.00 in the lead-up to its earnings report. Now, it’s almost $55.00 a share after reporting… Read More