September 2015

The Fed’s Alice In Wonderland Economy – What’s Next?

After the president of the United States, the most powerful person on the planet is the chairman of the Federal Reserve. By simply choosing to utter the right words, the chairman of the Fed can create or extinguish trillions of dollars of wealth both in and outside of the U.S. He holds the economic fate of billions of people in his hands. So it’s no shocker that investors carefully parse everything he says.

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Why Investors Cling to Hope Amid Stock Market Turmoil

History suggests that investors cling to hope all the way down. As this chart of the average holding period for a NYSE stock illustrates, investors actually turn up the hope and cling most tenaciously to their shares in bear markets. In bull markets they may espouse the buy and hold approach, but the chart shows that they don’t actually practice what they preach.

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OPEC Self-Destruction Thanks To Saudi Oil Strategy?

This article shows that the Saudis cannot achieve, or even come close to, their estimated 2014 net export revenue if they prolong their current strategy. This doesn’t mean the Saudis won’t stay the course despite its peril to their own situation. To repeat the two modified Keynes quotes: This doesn’t mean the Saudis won’t stay the course despite its peril to their own situation. To repeat the two modified Keynes quotes at the beginning of this article: “A government can stay irrational longer than it can stay solvent.” “Even in the short term, you’re dead, if you commit suicide.”

“A government can stay irrational longer than it can stay solvent.”

“Even in the short term, you’re dead, if you commit suicide.”

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