Crystal Ball 2017
We review our 2016 forecasts and look at the out-of-consensus calls and market trends likely to generate market moves and profit in 2017.
The Good Ol’ “Normal” Economy
A return to a more traditional US economic cycle would be good news for stocks as stronger growth and inflation drive pricing power, revenue growth and higher valuations. But watch these three signals to see if the economy backtracks.
Signs of Excess
It’s not just valuations that signal market excess. These two other exceedingly timely indicators merit careful attention.
Declining Potential
A quick review of productivity and wage-inflation theory explains the difference between the current slow-growth period and previous bull markets. It’s time to be cautious and be ready to take action if the Federal Reserve increases rates.
Janet Yellen’s $5.36 Trillion Speed Trap
The velocity of money has slowed significantly since the Great Recession, blunting the effectiveness of the Federal Reserve’s efforts to stimulate the economy through quantitative easing and ultra-low interest rates.