Latest Economic News #4

1. Continued Large Economies Growth  2. Tax Cuts Success?   3. Inflation's Back, Trouble Ahead?   4. Stocks Too High?   5. Recession Coming?

Return to   Latest Economic News    Updated 8/22/18   Please link to, use to educate and share.

Question 4

"Of course, market melt-ups are symbolic of the final phases of 
as investors who feel like they "missed the boat," 
finally jump back on board." 
The Melt-Up Continues 1/26/18



"Larry Summers is choosing to write op-eds claiming that Janet Yellen could not have left Jerome Powell with a better legacy. Nobody seems to have told Summers that in 2017, Yellen's Fed did not alter the Fed's interest rate path. It failed to do so despite the strong boost that a close-to-full-employment U.S. economy was receiving from the combination of a 25 percent increase in U.S. equity prices, a 10-percent dollar depreciation and the large unfunded Trump tax cut. In all probability, this has left the Fed well behind the interest rater ising curve, which realization is now   roiling the U.S. bond market. More disturbingly yet, no one seems to have told Summers that by keeping monetary policy too low for too long, the Yellen Fed, along with the world's other major central banks, have created a global financial market bubble of epic proportions. This bubble is to be seen in global equity valuations at lofty levels experienced only three times in the last 100 years, in government bond yields at historic lows, and in serious credit market mispricing." 2/5/18  Source 

This Indicates No

Leading Indicators Signal Economic Strength

Image result for leading economic indicators chart

This Indicates Yes
Asset Values Getting Ahead of Economic Growth



Lack of Liquidity Could Be a Problem


N. Howe Explains Investing in a Trump Market and Bannon's Affect 44 min video 

The Coming War Between Trump & The Fed to Determine Growth  8 min video

As Margin Debt Hits a New Record


Q Ratio is Mixed


Golden Hills Group Tobin Q chart