Hussman: Fed Action Won’t Boost Stocks

The problem with the comparisons John makes is that all of his "price/peak earnings" periods are not equal.  A valuation approach that completely omits interest rates leaves out the biggest asset allocation comparison faced by both managers and individuals.  Here’s the story, then I’ll elaborate. Link: Hussman: Fed Action Won’t Boost Stocks. Excerpt from John […]

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Yield Curve — an Indicator, not a Cause

Understanding the causal relationship is crucial in using any indicator.  Lacy Hunt says that reducing M2 growth will slow the economy, but what does this have to do with the slope of the curve?  Meanwhile, there was a lot of economic and media commentary today citing the same arguments I made yesterday.  I’ll summarize below, […]

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