U.S. economy

Economic Depression in 2015 a Real Possibility for U.S.

By Thursday, November 27, 2014

Great Depression in 2015Are 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

U.S. Economy: Four Indicators Paint Very Negative Picture

By Wednesday, November 26, 2014

U.S. Economy Four Indicators Suggest Stock MarketIf 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

Japan Slides Into Recession Again; U.S. Next?

By Friday, November 21, 2014

Japan Slides Into Recession Again; U.S. NextIn 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

Money Supply Strongly Suggests Higher Inflation Ahead

By Friday, November 7, 2014

Money Supply Strongly Suggests Higher Inflation AheadAsk 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

Dow Jones Transportation Stocks Suggesting Bullish Fourth Quarter?

By Friday, November 7, 2014

Where Are Stocks HeadedIn 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

How Markets Will Handle End of Money Printing Era

By Wednesday, November 5, 2014

Markets Will Handle End of Money Printing EraIt’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 29, 2014.)

The reason for ending the quantitative easing: “The Committee judges that there has been a substantial improvement in the outlook … Read More

Why the Housing Market Points to Very Weak 2015 Economy

By Monday, November 3, 2014

Housing Market Points to Very Weak 2015 EconomyThe chart below shows us that between April and August of this year, home prices in the U.S. declined. The S&P Case-Shiller Home Price Index is only released 60 days after each month’s end, so while data for September and October are not yet available, based on what I’m about to tell you, five years after the Great Recession, the U.S. housing market is on shaky ground again.

According to … Read More

These Poor 3Q Earnings Reports Foretell 2015’s Economy

By Friday, October 31, 2014

Poor 3Q Earnings Reports Foretell 2015’s EconomyAccording to research by UC Berkeley, in 2012, the top one percent of income earners in the U.S. earned 22.5% of all the income. The bottom 90%, on the other hand, earned less than 50% of all the income. (Source: Pew Research Center, January 7, 2014.) Income inequality in the U.S. economy is the highest it has been since 1928. The rich are getting richer, and the poor are seeing … Read More

Why Wal-Mart’s Sales Downgrade Should Worry Investors

By Friday, October 24, 2014

Why Wal-Mart's Sales DowngradeOn November 30, Switzerland’s citizens will cast a very critical vote.

Through a referendum, they will vote for or against the Swiss National Bank increasing its gold bullion reserves to 20%, the central bank halting the selling of gold, and the storing of gold bullion in the country. (Source: Kitco News, September 30, 2014.)

If the results are in favor of the referendum, it will mean Switzerland’s central bank will … Read More

Why I Expect a Big Boost in This Company’s 2015 Dividend Payout

By Wednesday, October 22, 2014

Company 2015 Dividend PayoutEven with the recent price retrenchment, there’s not a lot of value circulating in this stock market. Everything’s already gone up and the capital gains have been great the last few years. But it’s still a slow-growth environment in the global economy, and despite a very accommodative monetary policy, stocks can’t go up forever without experiencing a meaningful retrenchment.

Company earnings are pouring in and there have been some disappointments. … Read More