Conservative estimates now put the nation’s deficit at close to $4 trillion this year. Others say it could go to $10 trillion. Using the lowest of the numbers, the nation’s deficit-to-GDP ratio is likely to soar to close to 20%. It was expected to stay below 5% this year. But even that figure, which nowContinue reading “The Play Money of America”
The Congressional Budget Office projects GDP dropping 38% in the second quarter as 26 million Americans remain unemployed. The forecast is about in line with most Wall Street projections. In addition, the CBO sees the federal budget deficit swelling to $2.2 trillion in fiscal 2020. “The economy is expected to begin recovering during the secondContinue reading “Breaking: Government Projects 38% drop in GDP”
People need to digest this given the increased downside risks in May that many in the investment communities are trying to warn people of and keep in mind how many companies (eve the big tech ones) have withdrawn next quarter’s guidance. “The negative 4.8% decline in GDP in the first quarter was stunning. Importantly, thatContinue reading “The Risks Starts in May”
The Warren Buffet biggest Indicator. At all time highs? Higher then the 2000 internet bubble… higher then the 2008 crash even. At a 4.8 GPP from Jan to March. Stocks up again. 26 million filling for unemployment in US. Could we have yet another crash coming?
Some think stocks are not expensive after the recent fall. Today the Market Cap to GDP ratio is around 132%, still near its highest levels ever. It would need to fall to 106% just to get back to where it was at the peak of the bubble in 2007. Further, this ratio looks to becomeContinue reading “Market Cap to GDP Ratio”