His place was taken by Daniel Drew, also known as the “Great Bear”, “Ursa Major”, and the “Sphinx of Wall Street”. Drew was described by a contemporary as “shrewd, unscrupulous, and very illiterate – a strange combination of superstition and faithlessness, of daring and timidity – often good-natured and sometimes generous.” He was the great rival of Cornelius Vanderbilt and a sometime partner of Jay Gould.
Stocks with relatively low debt and lower P/E ratios are Corning Inc. (NYSE: GLW), Bed Bath & Beyond Inc. (NASDAQ: BBBY), American Express (NYSE: AXP), Gap Inc. (NYSE: GPS), Whirlpool Corp. (NYSE: WHR), PVH Corp. (NYSE: PVH), and CVS Corp. (NYSE: CVS). However, the average P/E ratio of this list is still at 13 which implies just a 7% long term return. For those who want more, the best thing to do is to look for special situations and emerging markets.
Jim: The depression of 1920–21 was a brutal one. Macroeconomic data were not so available then, so we can’t exactly measure it as we do measure things now. But unemployment was certainly in the teens. There was a vicious liquidation of stocks and bonds. Bond prices fell as stock prices fell. The real rate of interest on money markets was certainly in the teens.
The rhetoric in the United States is heating up and we’re sounding anything but…well…united. It seems to most media pundits like we are too far down the path to Civil War 2.0 to turn back now. Activists are laying siege to government offices. Threats toward people who disagree are growing in ferocity. It’s ugly and getting uglier. It’s a powder keg that is about to erupt. (Here are some thoughts on what a full-fledged Civil War might look like.) Read More
The first time I watched this I thought it was a joke – product of National Lampoon. Then the reality of it hit me like a ton of bricks. Is this really a productive use of Congressional time? The entire U.S. system is hurling toward a debt-induced financial and economic apocalypse. At the same time the Deep State, using Trump as its hand-puppet, is alienating the U.S. from the EU/NATO, this country’s last remaining allies. Read More
CHECK OUT Buying Bitcoin is Like Buying Airhttps://youtu.be/XmMQAuO62gIAnother Round of Tax CutsNow the Republicans are talking about another round of tax cuts. Just in time for the November election. Whether or not these tax cuts actually get passed is anyone's guess, but it will be an issue on the campaign trail, either because they delivered ...…
The public agencies raising money through bonds—such as states, cities, and counties—are known as municipal issuers. The ability to raise such funds is an exercise of the municipal issuer's buying power. In all bond issuances, the issuer serves as the focal point and the head of the financing team, and oversees the transformation of an idea for a project into an issuance. However, in some cases, the bond measure for a public project must first be approved by voters.
Older investors who need cash returns like dividends should mostly sit tight, or shift asset mixes more toward U.S. stocks, since the U.S. has the world's most fundamentally strong and stable economy right now. U.S. company dividends are not in apparent danger. But older investors tempted to try to snag some Apple or Facebook on the cheap might want to wait for clearer signs of stabilization before trying to make an opportunity of the sell-off.
Still, there are a lot of unknowns. Would millions of Americans switching from urban to rural living ignite a baby boom and cure our demographic problems? It’s certainly not out of the question. After all, birthrates are substantially higher in rural areas. Plus, families could dramatically reduce their cost of living by moving out of cities, allowing them to feed more mouths.
There’s no dispute that at least some, if not a great deal, of information in the anti-Trump “Steele dossier” was unverified or false. Former FBI director James Comey testified as much himself before a Senate committee in June 2017. Comey repeatedly referred to “salacious” and “unverified” material in the dossier, which turned out to be paid political opposition research against Donald Trump funded first by Republicans, then by the Democratic National Committee and the Hillary Clinton campaign.
Dr. D: The money, the unaccountable, uninhibited release of tokens can do more than just buy centuries of hard labor in seconds, it‘s also a method of control. Banks, our present issuers of money, can approve or destroy businesses by denying loans. They can do this to individuals, like denying loans to unpopular figures, or to whole sectors, like gun shops. They can also offer money for free to Amazon, Facebook, and Tesla, which have no profitable business model or any hope of getting one, and deny loans to power plants, railroads, farms, and bridges as they fall into the Mississippi.
The drastically slowing economy is threatening both corporate earnings growth and the bull market. If GDP grows at an anemic 2% average annual rate through 2019 and a 1.8% rate longer term, as forecasted by the Federal Reserve (per the Wall Street Journal), stock prices are likely to lose steam and tumble. Five famed investors see a bear market around the corner, and recently gave their views on how the downturn will begin and how low it might go, as reported by Money.com, a division of Time Inc. The five include Tom Forester, Jim Rogers, Marc Faber, Bill Gross and Rob Arnott.
The primary reason why stock prices have been soaring in recent months is because corporations have been buying back their own stock at an unprecedented pace. In fact, the pace of stock buybacks is nearly double what it was at this time last year. According to Goldman Sachs, S&P 500 companies spent 384 billion dollars buying back stock during the first half of 2018. That is an absolutely astounding number. And in many cases, corporations are going deep into debt in order to do this. Of course this is going to push up stock prices, but corporate America will not be able to inflate this bubble indefinitely. At some point a credit crunch will come, and the pace of stock buybacks will fall precipitously. Read More
He is, in addition, the author of a pair of political biographies: John Adams: Party of One, a life of the second president of the United States (Farrar, Straus, 2005) and Mr. Speaker! The Life and Times of Thomas B. Reed, the Man Who Broke the Filibuster (Simon & Schuster, 2011). His new biography of Walter Bagehot, the Victorian man of letters and financial journalist, will be published in 2018.
Many of us do think that something isn’t quite right with the world economy. One in a million actually understands, where does it go wrong? Powers that be, do not want you to know about it as it’s your ignorance which keeps them at the top of the financial food chain. I don’t know of any other example in history where so many were looted by so few.
The United States is effectively bankrupt, but that doesn’t matter to the GOP. Once evangelists of fiscal responsibility and scourges of deficit spending, Republicans today glory in spilling red ink. The national debt is now $20.6 trillion, greater than the annual GDP of about $19.5 trillion. Alas, with Republicans at the helm, deficits are set to continue racing upwards, apparently without end. Read More
This yearly ritual has become part of the news cycle, and the inequality it exposes has ceased to shock us. The very rich getting very much richer is now part of life, like the procession of the seasons. But we should be extremely concerned: their increased wealth gives them ever-greater control of our politics and of our media. Countries that were once democracies are becoming plutocracies; plutocracies are becoming oligarchies; oligarchies are becoming kleptocracies. Read More
Jeffrey thinks that we are headed into a much tougher environment because “the Central Bank balance sheets will stop growing at the beginning of 2018, [and] the liquidity that’s helped drive the market is going to reverse. That is not favorable for risk markets.” As such, Jeffrey and his team at DoubleLine have been de-risking their portfolios and have cautioned investors to do the same.
The watchdog found that "valuations are also elevated" in bond markets. Of particular interest is the OFR's discussion on duration. Picking up where we left off in June 2016, and calculates that "at current duration levels, a 1 percentage point increase in interest rates would lead to a decline of almost $1.2 trillion in the securities underlying the index."