Highlights from December — Third Wave Finance on Twitter

third-wave-finance-12-31-2016

Highlights from December — Third Wave Finance on Twitter


  •  Charts showing persistently over-optimistic analyst estimates for stock earnings

  • Comment referencing the punishing affect of Fed rate hikes after allowing an over-indebted economy to emerge

  • Quote showing the damaging nature of encouraging temporary debt-based expansions — more specifically, ones that disregard the quality of debt that is being taken on (i.e. does the debt create an income stream to repay principal and interest)


  • Charts and comments showing the severity of the current stock market overvaluation

  • Chart showing increase in debt levels being used to offset both stagnant incomes and languishing economic growth

  • Chart showing the falling risk adjusted return for credit-sensitive bonds (i.e. “junk” bonds)

  • Chart showing participation in the labor force

  • Comment regarding economic downturns that result from debt alone

  • Commentvideo, and chart on central bank attempts to “stabilize” the economy and “reduce risk” by encouraging debt (regardless of the quality of the debt being taken on — i.e. does the debt create an income stream to repay principal and interest)

  • Comment and charts on persistent misjudgment of the rate-hike timeline

  • Comments on experimental monetary policy


  • Chart showing that bond yields/prices are not closely correlated with stock valuations


  • Comment about secular (long-term) economic growth and comment about cyclical (shorter-term) economic growth

 

 




 

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