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Root Monetary Behavior

By |2017-06-19T18:01:39-04:00June 19th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

Capitalism has always featured feedback mechanisms. They never were perfect, as nothing is going to ever be. Instead, market discipline was always a messy affair as it more often throughout history included periods of undisciplined behavior followed closely by mass exodus, crash, and then depression. Economists after 1929 thought of themselves as a replacement mechanism for self-correction. Regulators had until [...]

Further Measures of Market Risk

By |2014-09-26T15:48:40-04:00September 26th, 2014|Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

Continuing on with the valuation theme, there are a couple of additional “market” indicators that are also at or above dot-com levels. While not strictly a valuation technique, the level of margin debt and really customer net worth gives us an insight into one aspect of multiple expansion. Margin debt for FINRA accounts (which includes both NYSE and what used [...]

More Depth To Market Risk

By |2014-09-26T12:57:02-04:00September 26th, 2014|Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

With last week’s release of the Financial Accounts of the United States (formerly known as the Flow of Funds; still designated Z1 by the Fed’s system) we can add to yesterday’s examination about bubbles and market risk. Putting the figures together, the composite picture is one where stocks are as stretched in terms of valuations to a degree only seen [...]

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