Here We Find How Stuff Works

U.S. Recession or Not?

Are you one of the millions of Americans contemplating whether or not the U.S. Economy is now in a Recession? I’ll answer that question with the following News Report: People are robbing Dollar Stores now! I’m LMAO!

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Unwrapping American Capitalism

The take away from this exercise is to understand that government spending, along with increased tax burdens, can eventually crowd out personal consumption and investment, and result in reducing future growth.

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U.S. Interest Rates and “Critical Mass”

The Implied P/E Expansion Model is a simple quick-test to assist in determining whether current valuations in the U.S. stock market [in aggregate] make sense given the level of interest rates. What’s funny about this is that 15 years ago I wrote that the “normal” 10-year Treasury yield was 7.5-8%!

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U.S. Stock Markets, I’ll “See You in September”

Inflation will continue to roar @ 15% [including food and energy]. The next Fed rate meeting is not until September. Given the highest runaway inflation since the 1970’s, the Fed will need to deliver yet another large hike in rates. How is that compatible with growth stocks?

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When a Number 2 is Number 1!

I was about to undergo a new project where tons of measurements had to be taken and suddenly I realized that there wasn’t a pencil in the house. After scouring around, I found two pencil remnants, very short and only one had any eraser left. So I did something I haven’t done since my kids were in elementary school, I went shopping for pencils.

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On Contraction 101’s: The Order of Things

If we are at the end of this run-up in commodities, and hence inflationary pressures, some factors we haven’t seen before could be responsible, making the end of this economic expansion look much different than those of the past.

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