Monetary policy has lost its mojo because the world’s central bank, the Fed is in a liquidity trap. Deutsche Bank Securities chief economist recently published a report titled “QE no longer works”. Indeed, a decade on from $33 trillion in bailouts, an unprecedented amount of liquidity, zero interest rates and bubbly stock prices a string of investor titans are forecasting a US recession in 2020. Who will come to the...
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Automakers in the US and Europe are experiencing Carmageddon, which is loosely defined as dismal demand for passenger cars. The retail brick and mortar meltdown is now spreading to Carmageddon, despite the so-called “economic recovery”. Carmageddon is now official as the auto industry reports its biggest challenges since 2009 in a climate of waning consumer demand for passenger cars Auto sales are down significantly since 2019. The...
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The cost of extended monetary easing is likely to be amplified as the Fed’s great pivot to a new era of monetary easing was recently declared in June’s FOMC meeting. Over-inflated asset prices in bonds, stocks, real estate, coined as the everything bubble, is perhaps the most talked about cost of extended monetary policy. Stocks are no longer cheap but is that still the case with the Fed’s great pivot? The P/E10...
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Technology windfall stocks will likely give investors on the hunt for growth stocks the best return for their money. The starter gun has been fired, the Fourth Industrial Revolution has started and technology windfall stocks are charging ahead in the first place. “The real work of social innovation is to fix our broken system”, wrote Cheryl Heller. Technology windfall stocks, particularly those which provide support and infrastructure...
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The latest Federal Open Market Committee (FOMC) meeting, June 19, could have been interpreted as the Fed’s great pivot to a new era of monetary easing from what was a brief period of “patient” normalization policy. Fed officials no longer made reference to being “patient” on rates. Instead, the tone was more dovish with talk about “uncertainties” around its outlook increasing. The Fed’s great pivot is an admission that...
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