Posts filed under “Psychology”
Even in this recovery with near zero Fed Funds, job growth was weak and wage growth never materialized.
What will the next recovery look like?
Post Bubble Yields: U.S. 10 Year(Post-2000) vs Japan (Post-1989)
click for huge chart
Charts courtesy of JDC
The stimulation for the next recovery might be even more limited, given the extremes in current leverage and rates. If we follow the Japanese model, stocks could go down for several years, bonds go up even further, as the dollar rallies, materials and energy stocks do poorly. In this scenario, Gold diverges from the dollar and rallies strongly.
Quote of the Day
The greatest booms unfold when capital concentrates in one sector. When that capital shifts, you also find the result of the greatest financial panics in history.
Is this the Magazine Indicator at work? First Fortune, now Time Magazine: We’ve seen some terrific Contrary market calls from magazine covers: Time magazine naming Jeff Bezos man of the year in December 1999 marked the top of the internet bubble; The March 21st 2005 Newsweek cover story, “The Incredible Shrinking Dollar,” marked a key…Read More
Fortune aks: Is it too late to get in? The answer to that question, when posed by a major magazine cover, tends to be an emphatic yes. > > The articles are actually more circumspect than the cover: Is the Housing Boom Over? How Real People Get Rich The New King of the Real Estate…Read More