Highlights from January — Third Wave Finance on Twitter

third-wave-finance-1-31-2017

Highlights from January — Third Wave Finance on Twitter



  • Charts showing the third period of the 21st century where stocks have been priced for poor future returns

  • Illustration of the “boomerang-effect” of one’s own actions

  • Reminder and comment that financial “panics” can bounce back & forth between domestic & foreign economies

  • Reminder of the nature of the existing negative government expenditure multiplier


  • Comment and chart on price-vs.-value, expected returns for stocks, and why valuations are more relevant over longer periods of time

  • Reminder and comment regarding distribution of financial wealth and the more serious issues of debt, employment, and demographics

  • Chart showing that time-horizon is important to consider when taking on investment risk; there have been 20-year periods where the S&P500 has ended lower than the point at which it started. Do note that stocks are only one asset class; see the Investment Environment section under the Education tab to begin to learn about lesser-known investment options.

  • Charts showing minimal reward-vs.-risk for low quality bonds (i.e. “junk” bonds)

  • Chart showing correlation of investment(saving) vs. trade balance(imports/exports). Also — in relation to the article — a comment on current investment risks.


  • Comment on poor demographic trends associated with over-indebted, stagnant-income economies

  • Gary Shilling
    • videos discussing Fed over-optimism, bond yields, and disinflation:
    • comment on the Fed forecasting
    • comment on causes of inflation
    • comment on the distinction between growth and inflation

  • Quotes from Lacy Hunt & Van Hoisington
    • Quote on the lopsided nature of monetary policy tools in the current economic environment
    • Quote on constrictive nature of excessive debt

  • Distinctions between growth, inflation, and long-term treasury bond yields

  • Comment on structural issues constraining economic growth

  • Comment on failing upward mobility and its constraint on economic growth




  • Comment on Fed forecasting of GDP

 

 




 

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