Financial Sense

Another Look at the Year Five Phenomenon
Clif Droke's picture

Most investors are familiar with the Year Five Phenomenon, which assumes buoyant stock prices in the fifth year of the decade. Yet few realize that there are also corollaries to this phenomenon, viz.

Pressures From China, Greek Markets
Sheraz Mian's picture

Chinese stocks have been red hot lately, but they fell sharply on Thursday, with the Shanghai composite down -6.5% in Thursday’s session. There is no one factor that drove the sell-off, though a number of small factors...

How Healthcare Is Dooming the U.S. Economy (Three Charts)
Charles Hugh Smith's picture

As it stands now, U.S. healthcare will bankrupt the nation and doom it to permanent stagnation and recession. That healthcare alone is dooming the U.S. economy is not news to Of Two Minds readers, as I have been...

Global Dynamics Playing Larger Role in Fed Policymaking
Global Risk Insights's picture

The Federal Reserve has little appetite to make policy based on the economic situation outside of the US, but minutes from its most recent meeting show that it is being forced to. Early in her tenure as Chair of the Federal Reserve...

Making Sense of the Latest Unemployment Data
Andrew Zatlin's picture

The great minds in economics can’t seem to agree whether the labor market is showing signs of tightness, or if it’s easing up. If labor is tight and tightening, why aren't wages rising? Why isn't inflation rising more than 2%?

Dr. Lacy Hunt on US Endgame and Greatest Risk to Financial Markets
FS Staff's picture

Wondering why economic growth can’t seem to take off or why inflation continues to fall? According to Dr. Lacy Hunt, Executive Vice President of Hoisington Investment Management, it all comes down to debt, which helps to explain most of the world’s economic...

Bad News for China: Bernanke Says It’s Okay
John Rubino's picture

Former Fed chairman Ben Bernanke will be remembered by future generations as the guy who didn’t see a housing bubble while he was creating it. That is, unless he says something even dumber, like this...

Central Banks, Interest, Bailout Barometer
David Kotok's picture

We send this note as a follow-up to ongoing comments about the size of central banks’ balance sheets, equity or lack thereof, and the guest commentary by Alex Pollock regarding the Swiss National Bank. The link that...

Are Hedge Funds Worth More Than Kindergartens?
Keith Weiner's picture

"The top 25 hedge fund managers made more than all the kindergarten teachers in the country," declared President Obama in a discussion of poverty at Georgetown University. Calling them “society’s lottery winners...

New Homes Sales Surprise Forecast
Doug Short's picture

This morning's release of the April New Homes Sales from the Census Bureau at 517K was 7K above forecast, with the previous month an upward revision. The forecast was for 510K sales, which...