Also, “Around the World With the LEI’s”
This week on the Big Picture, Jim’s first topic is “Why I changed my mind on hyperinflation”. Jim covers the last decade with oil going from $10 to $150, and gold zooming from $250 to $1900. However, the great financial crisis of 2008 changed the landscape. Jim is now moving toward the disinflationary camp...
Richard Duncan—author, former specialist at the World Bank and consultant to the IMF—says the Federal Reserve plans to stimulate the stock market by 10-15% each year for the next two years to drive economic growth in the U.S. and around the globe.
People constantly ask me what it would take for me to abandon my stance that "hyperinflation is not going to happen in the US".
Today we start with a bit of history discussing the one key event which allowed Adolf Hitler to become the absolute dictator of Germany in 1933. It was a piece of legislation called The Enabling Act.
Markets are up over 8% since the October lows and as the market has vaulted higher so too have investor sentiment levels, which will have to be worked off at some point. As seen below, institutional active managers are the most bullish they have been since early 2013 with retail investors the most bullish they have been since early 2012.
Claims that the shale boom in the US will eventually see the country become energy self-sufficient seems to have received its biggest blow yet after the International Energy Agency...
Over the last six decades, US corporate profits as a percentage of GDP have consistently bottomed in the 4.5-5.5% range in each inevitable recession. There are no exceptions – nine out of nine. We now stand near 11%. Will the next recession cycle, whenever it arrives, be different?
Weak inflation readings in the US continue provide the Fed with the rationale to maintain securities purchases in what amounts to a "QE trap". With the PCE inflation measure once again below one percent, the FOMC doves fear that "taper" could bring about deflationary pressures.