Economic Trends

Long-term trends grow from short term trends. We attampt to determine the short term trends and where they are pointing.

Fear vs Greed

Reasons To Remain Open To Bullish Outcomes For Stocks

Any data that tells us to keep an open mind about better than expected outcomes must be confirmed by the stock market; something that has not happened yet. For example, if the stock market is to rally for the next few months in a surprising manner, that is not possible as long as the S&P 500 fails to make a higher high above 2,134. Our market model does not make decisions based on what “may or may not happen”. Therefore, the only real value to the table and video above is to help us remain open to and prepared for all outcomes (bullish and bearish). A few reasonable S&P 500 guideposts relative to improving bullish probabilities include 2096, 2107, 2116, and 2134. Each push above a guidepost level improves the odds for the bullish case. Below these levels, the expression “the market has some work to do” applies.

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Greece Should “Shoot the Dog and Sell the Farm”

The bell is tolling for Alexis [Tsipras]. European leaders from all sides have abandoned him as he burns through every last bridge that was once in place. His only meeting of importance during this crucial week of negotiation is with Putin – which clearly does not inspire any confidence for a near-term resolution.

It is actually amazing that we have not seen any of the left-leaning party leaders from the rest of Europe running to Tsipras’ side as he truculently engages his paymasters. Where are all these European anti-austarians? Of course they are hiding from the Germans, hoping not to receive the same fate as Alexis. So there he sits, alone and under his last Soviet-held bridge, just like Hemingway’s Robert Jordan. He is waiting to cause just a little more damage before his time is up.

In the end, there is no question that the Germans have executed a near flawless plan to humiliate and vilify Greece. The Greeks now stand as poster children for European profligacy. And they are being paraded through every town square in the EU, in shackles, as the bell tolls near the gallows for their leader.

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Windfall Profits

Should Airlines Be Stopped From Making Windfall Profits?

There’s this crazy talk about how airlines are some kind of public utility that should only be allowed an “acceptable” profit margin so you and I can continue to fly coast-to-coast for $300 round trip… This is the sort of thinking that gets us in trouble, though. This is what gets entire industries nationalized, which is what happens when some congressman has his flight canceled and starts talking about how the airline industry is in the “national interest.”

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Argentina-oil

Can Argentina Capitalize On Its Vast Shale Reserves?

Argentina, once a regional energy leader, is now better known for financial busts and bombastic politicians than hydrocarbons prospects. Still, with a resource potential both vast and untapped, the nation has never been far from energy investors’ minds. The question today is just how much Argentina is willing to change and how this plays into a low oil price environment that is already negatively impacting investment elsewhere.

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London Infrastructure

Trends in Digital Infrastructure- Infographic

Normally, we spend quite a bit of time looking at precious metals like Gold and Silver, Oil, Real Estate, the Stock Market and other related trends. But, today we are going to look at something entirely different. Something that perhaps you haven’t given much thought to. Ten to Fifteen years ago, I was involved in the Information Technology (IT) field and was responsible for setting up regional offices in cities as different as Berlin is from Bangkok. These far flung offices were in regions of the world from Brazil to Zimbabwe and the major limiting factor was internet access. Although it was common enough in most developed countries, in many areas getting a dedicated IP address along with a high speed internet connection was near impossible. Fortunately in the intervening years high speed connections have become much more common even in the remotest of locations. This has allowed development of critical computer skills even among poor nations. And long term, this may provide a path toward economic development for these countries. But even developed countries may be suffering from a lack of infrastructure as you will see from the following article.

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