Happy Halloween The average trick-or-treater hauls in between 3,500 and 7,000 calories worth of candy on Halloween night. Tt takes 44 hours of walking to burn that off! Earning Quality “NIPA profits have been flat for the last five years, while S&P 500 GAAP earnings hit records…earnings quality is among the lowest of the expansion
The Economist Chart of the Day appended below shows how much wealth has been made in technology over the last decade. You’re not a genius for predicting that (eventually) this trend corrects. What sector is next to see this kind of wealth creation? Stay Tuned, Disciplined & Patient! {TJM} The Investor & Character Equation (ICE)
As we are close to wrapping up this decade, some perspective on stock returns. Average Real Returns (After Inflation) per Decade were 6.6% per year. Worst was -3.4% (2000s) Best was 16.7% (1950s) We’re currently ending the top 5 best decades. What does that mean for the next 10 years? Stay Tuned, Disciplined & Patient!
Some things never change. The below is from The Economist – 1858 (Hat Tip Jamie Catherwood): “It is equally beyond doubt that every speculative mania which has run its course of folly and disaster has derived its original impulse from cheap money.” Complaints over the abundance of cheap money and how it causes speculation. This
Semantics. But either way with the issues within the plumbing of the repo and money markets of last month, they ARE EXPANDING their balance sheet. Call it what you will. By the looks of the above Chart of the Day, an increase in the Federal Reserve’s balance sheet led to an epic rise in stocks.