“The next charts were shared courtesy of Neil Azous. The first is the percentage of Russell 2000 stocks above their 200-week moving averages, which is at 40% (MKM Partners). Historically, when that percentage reaches 40%, it was at or near an intermediate-term top in the index. “
Thoughts on Thomas Piketty’s “Capital”
I read this 700 page book. God be damned if I don’t write a review on it just like everyone else….
The Best Thing You’ll Read Today: Settling the Profit Margin Debate
Corporate profit margins are elevated, but not as much as you might have been told….
Michael Lewis: The US Stock Market is “Rigged”
Michael Lewis was on 60 Minutes this evening calling the US stock market “rigged” in favor of high frequency traders….
Central Banks are Really, Really Powerful
If there’s one lesson that everyone has realized over the last 5 years it’s that central banks are really, really powerful. They are lenders of last resort, they can completely alter our portfolio composition, they can alter expectations, etc. I think everyone would agree on that by now.
Crickets…
Scott Sumner’s silence is deafening….
Can we All Agree to Stop Citing the Dow Jones Industrial Average?
The Dow Jones Industrial Average is a terrible index of “corporate America”. I don’t know why anyone still cites it. I know, it’s a relic of an era long past. But can we all just agree to let it die?
On the ‘The Misuse of Theoretical Models in Finance and Economics’
“In his 1953 essay “The Methodology of Positive Economics,” Milton Friedman famously argued that we should not judge a model based on the realism of its assumptions but only by the accuracy of its predictions. “
Let’s Talk About Seigniorage
Does Scott Sumner know how siegniorage works in a modern fiat monetary system?