by pentoport | Aug 5, 2019 | Commentary
August 5, 2019 With Inflation hovering around 2% and the level of unemployment at historic lows, the Fed is fully attaining its prescribed dual mandate of full employment and stable prices (now defined as 2% inflation rate). Given this, one would think Jerome Powell...
by pentoport | Jul 29, 2019 | Commentary
July 29, 2019 Let’s dive right into why lowering interest rates at this point in the cycle will not provide much of a boost to the faltering global economy and may not be much help to the stock market either. The simple truth is that asset prices are far too...
by pentoport | Jul 22, 2019 | Commentary
July 22, 2019 The Q2 earnings season is upon us and the risks to the rally that started after the worst December on record at the close of last year is in serious jeopardy. We received a glimpse of this with some of the current companies that have reported. For...
by pentoport | Jun 24, 2019 | Commentary
July 15, 2019 You should completely understand that the market is dangerously overvalued and that global economic growth has slowed to a crawl along with S&P 500 earnings. However, you must also be wondering when the massive overhang of unprecedented debt levels,...
by pentoport | Jun 17, 2019 | Commentary
June 17, 2019 For the first time in nearly 30 years, the Chinese central bank and the Banking Regulatory Commission announced it would take control of one of its banks. The troubled Mongolia-based Baoshang Bank had assets of 576 billion yuan ($84 billion), and its...
by pentoport | Jun 10, 2019 | Commentary
June 10, 2019 The buy and hold mantra from Wall Street Carnival Barkers should have died decades ago. After all, just buying stocks has gotten you absolutely crushed in China for more than a decade. And in Japan, you have been buried under an avalanche of losses for...
by pentoport | May 20, 2019 | Commentary
May 17, 2019 The global economy began an experiment with fiscal and monetary alchemy when it exited the gold standard almost 50 years ago. In 1971 the USD completely separated from the last vestiges of its tether to gold. In effect, it released the worldwide monetary...
by pentoport | Apr 29, 2019 | Commentary
April 29, 2019 To put into perspective how overvalued and dangerous the US market has become; I often cite the figure of total market cap to GDP—currently 145% of the economy. How high is 145% of GDP? It is a full 30% higher than it was before the start of the Great...
by pentoport | Apr 22, 2019 | Commentary
April 22, 2019 Historically speaking, a normal Fed tightening cycles consist of raising the Fed Funds Rate (FFR) by 350-425bps. It is at that point that the yield curve usually inverts–thus, disincentivizing future lending and closing down the credit conduit. At...
by pentoport | Apr 8, 2019 | Commentary
April 8, 2019 Recently, Wall Street has been myopically focused on the IPO of a ride-sharing company called Lyft, which by the way, is hemorrhaging money. Since investors have become much less concerned about profits and valuations, this offering was an incredible 20...
