good article, Doc. It kind of reminds me of a point Mish made a while back about exponential functions and the dangers of apparently small imbalances over time. Basically, if wages are increase slightly slower than inflation (which is bound to happen when the CPI is as cooked as it has been for several decades), the effects will become massive over time. For instance, if real inflation was 4.5% while median wages increase, let’s say, 3.5% per year in the same time, most people will say it’s not a big deal. Just a penny on a dollar. But if this is consistently the case for 25 years running, that $25,000/year job would now be pulling in about $59,000 but the $75,000 house purchase back then would now be demanding about $225,000. The d-to-i ration to maintain the same household on the same job, then, moved from 2.4 to over 3.0. Another 5 years down the road and it’ll up to 3.2. But if those 5 years are between 2008 and 2013, the chances of maintaining any momentum in wages is slim. Adjusted for inflation, everyone I know working the private sector is actually losing ground versus inflation, even with the rare down year factored in. I won’t pronounce it dead just yet, but the American dream certainly is taking a pounding.
The gold price already bottomed, says InvestingHaven’s research team. The upside potential in gold’s price near term is 7 percent while gold’s price may rise 12 pct into 2019. Best case, though, if gold would get a bid with global markets continuing their sell-off we may see 25% upside. That’s when silver miners will do exceptionally well, similar to their epic rally in 2016.

Over the last decade many traditional and new market participants have begun to apply current technology solutions to the municipal market remedying many of the latent problems associated with many aspects of the municipal bond market. The emergence of products like small denomination municipal bonds, for example, is a result of new bond financing platforms. Such products also open up the muni market to middle-income buyers who otherwise couldn't afford the large, $5,000 minimum price in which bonds are typically bundled. The general idea with modern platforms is to leverage technology to make the market more responsive to investors, more financially transparent and ultimately easier for issuers and buyers. Many believe that, in doing so, more people will compete to buy muni bonds and thus the cost of issuing debt will be lower for issuers.[15]

Good short-term returns, moreover, increase egos, and complacency comes into play. One of the biggest reasons is that the information is all there transparently, so there is no such thing as a free lunch. Remember, all the information about companies is publicly available and there are people whose job it is to look at this information and weight the pros and cons of all that information.
As Niall pointed out: “Things are becoming quite disorderly for the liberal order.” Before we go on, I want to make a critical point. Whether you support military intervention, or not, isn’t the issue here. The issue is that without the US playing the role of guarantor, we are likely to see a rise in conflicts. That is going to affect financial markets and your portfolio.
Most of us are aware of the inflationary pressures in the major economies, that so far are proving somewhat latent in the non-financial sector. But some central banks are on the alert as well, notably the Federal Reserve Board, which has taken the lead in trying to normalise interest rates. Others, such as the European Central Bank, the Bank of Japan and the Bank of England are yet to be convinced that price inflation is a potential problem.
Yet in many ways, bad news for bonds is good news for equities. Investors seem to turn to stocks when bond prices are falling, as changes in bond yields and equity performance have been positively correlated since 1998. Plus, an increase in inflation expectations that's driven by economic growth is usually a good sign for equities, especially when expected inflation crosses the 2 percent threshold.
RATE AND REVIEW this podcast on Facebook.https://www.facebook.com/PeterSchiff/reviews/Bearish SignalSo much for yesterday's dead cat bounce. All of the U.S. stock market averages came plunging down today, in fact they all closed below yesterday's lows. So even though we had those big rallies off the lows, today, we lost the entire gain and clos ...…
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It's true that Treasuries rallied last week, as yield-starved foreign investors poured into the market following the Fed's rate decision and equity markets tumbled on the Trump administration's tariffs targeting Chinese exports. But the most telling part of the action was the 10-year Treasury yields only managed to drop a measly three basis points on the week as the Dow Jones Industrial Average tumbled more than 1400 points in its worst decline in more than two years.
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