Financial Sense Blog

Jim Paulsen on Why Investors Should Prepare for a 'Growth Bomb' to Hit US Shores

Nov 9 – Though most of the focus has been on the 2020 presidential election and the surge in Covid cases, Leuthhold Group's Chief Investment Strategist Jim Paulsen is telling investors and US businesses to be prepared for a potential 'growth bomb'...

Volatility in Scope: No Man’s Land

Nov 9 – As of today, the volatility index (VIX) stands at 24.88 and is deeply confused about its market identity. Is it bullish, is it bearish, or is it non-binary? The VIX has not closed below 20 since pre-historic…excuse me, pre-COVID times. This stands contrary...

To Be or Not to Be...in a Bear Market

Oct 30 – Are we in a bull market or are we in a bear market? That is the only question investors should be asking themselves as we find the market down nearly 10% since our recent high in mid-October. Is this an opportunity to buy in an ongoing...

Do Not Let Short-Term Noise Overshadow Long-Term Investing

Oct 19 – Such an epic hit to our economy has been met with an even larger amount of stimulus, and the word “epic” does not do it justice. How do you respond to a $2.2 trillion hit to the economy? With more than $5 trillion in stimulus! Up to now...

Returning to Ground Zero

Sep 23 – The lesson to be learned here is that a system which is built on a pile of debt will likely be supported at all costs to prevent a deflationary spiral like that seen during the Great Depression. Whether in Europe, China...

Is the Dollar About to Crash?

Aug 13 – Non-Commercial hedgers (“dumb money”) are the most short the US dollar since the early 2018 bottom. When their short positions get to this lower extreme, that usually indicates a bottom as shown by the following graph...

Russell Napier on ‘Monetary Pyrotechnics’ and Coming Age of Inflation

Jul 16 – Noted financial historian and strategist, Russell Napier, recently joined FS Insider for a conversation about the new inflationary landscape Russell sees the world heading toward. He outlined his change in...

Zero-Bound: Going Negative

Jul 15 – The recession has caused interest rates to drop to zero and we expect them to remain there for years to come in order to lower borrowing costs on an exploding national debt. The Fed is being forced to monetize most of the government’s debt...

Tech-Tock, Tech-Tock

Jul 14 – What this data tells me is that we are now entering a phase of the Nasdaq where fundamentals are out the window. Returns, profit and greed now run the show and if you stand in the way of these things you may just be the next up to be canceled...

Government Policy One of the Main Drivers of Financial Bubbles Throughout History

Jul 8 – On a recent edition of FS Insider, Cris Sheridan spoke the authors of Boom and Bust: A Global History of Financial Bubbles, out August 2020. Authors William Quinn and John Turner discussed what a bubble actually is...