Category Archives: Economics

Creative Destruction 3.0 Meets Roaring ’20s 2.0

Posted on January 2, 2020 by

Creative destruction refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. It was coined by Joseph Schumpeter (1942), who considered it ‘the essential fact about capitalism’. The process of Schumpeterian creative destruction … Continue reading →

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Why The Stock Bull Is A Big Meh For Most Americans

Posted on December 5, 2019 by

Interesting piece by the FT today that only one-third of Americans feel the benefits of the great bull market.   Only 40 percent of the population realizes stocks are up for the year.  These are tough numbers for a so-called “populist” … Continue reading →

Posted in Economics, Equities, Quotes, Uncategorized | Tagged | 11 Comments

Manufacturing Sector Contraction Continues, Led By New Orders – ISM

Posted on December 2, 2019 by

Of the 18 manufacturing industries, five reported growth in November: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Paper Products; Miscellaneous Manufacturing; and Computer & Electronic Products. (Tempe, Arizona) — Economic activity in the manufacturing sector contracted in November, and … Continue reading →

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Discipline Trumps Conviction

Posted on November 25, 2019 by

Today’s close above 3125 takes us out of our short position, which we started scaling into at 3025.  We are still fairly confident that this market can be bought at much lower prices at some point in the next 18 … Continue reading →

Posted in Economics, S&P500, Uncategorized | Tagged | 2 Comments

This “Chinese Hoax” Is Already Getting Old But Just Beginning

Posted on November 19, 2019 by

The concept of global warming was created by and for the Chinese in order to make U.S. manufacturing non-competitive. — Donald J. Trump (@realDonaldTrump) November 6, 2012 Our power is going to be shut off again.  That’s three times in … Continue reading →

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World Growth Projections – IMF

Posted on November 19, 2019 by

In case you missed the IMF World Economic Outlook (WEO) growth projections,  here you have it.  Forecasts are a guide, not a constitution.  

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COTD: Recession Triggers

Posted on November 19, 2019 by

COTD = Chart of the Day Nice chart from Mark Zandi from Moody’s Analytics.

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GDP Now Takes Q4 Forecast Down To 0.3 Percent From 1.0 Percent

Posted on November 15, 2019 by

The Atlanta Fed’s GDPNow dropped its forecast of Q4 growth to just 0.3% from 1.0 percent. The New York Fed’s GDP Nowcast is showing a gain of 0.4%. Today’s two economic releases indicating lackluster retail sales, consumers purchases of big-ticket … Continue reading →

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World’s Fastest-Growing Economies – October 2019

Posted on November 12, 2019 by

We have updated the GDP growth rates for the 2019 and the 2020 forecasts and ranked the world’s fastest-growing economies in the ginormous table below.  The data are from the October 2019 IMF’s World Economic Outlook. Note, even though India … Continue reading →

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Unit Labor Costs Hit 5-year High

Posted on November 6, 2019 by

Back in the day, before the Great Flood [of Liquidity] and the “world went mad,” the productivity and unit labor cost release could really move the stock market.  I mean, really move the market.  The connection is through expected margins and … Continue reading →

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