by pentoport | Dec 28, 2020 | Commentary
December 28, 2020 Wall Street is universally bullish on the economy and stock market for 2021. For example, Morgan Stanley is on record predicting the U.S. economy will expand by 5.9% next year. The stock market has front-run this optimism. The most important...
by pentoport | Dec 14, 2020 | Commentary
December 14, 2020 When the market cap of equities reaches 183% of GDP and government bonds yield near 0%, or even less overseas, the notion that one can just buy and hold a balanced portfolio is extremely dangerous. The minefield is not packed with IEDs; it is...
by pentoport | Dec 1, 2020 | Commentary
December 1, 2020 The stock market and economy appear to be doing ok for the moment, as the incredibly dangerous bubble inflates further. This optimism is predicated on a plethora of COVID-19 Vaccines, projected to bring the economy back to its pre-COVID state of...
by pentoport | Nov 23, 2020 | Commentary
The evolution of humankind supposedly goes something like this: From a void and through a series of serendipitous happenstances arose; galaxies, the Earthly Primordial ooze, Bacteria, Monkeys, and eventually homo sapiens (wise man). The evolution of the Fed is...
by pentoport | Oct 19, 2020 | Commentary
The Japanese word for goodbye is Sayonara. But it doesn’t just mean goodbye, it means goodbye forever. Unfortunately, that is what our country is doing to American Capitalism. In the quixotic fantasy world of Keynesian economics, the more money a government borrows...
by pentoport | Sep 28, 2020 | Commentary
September 28, 2020 During the FOMC’s September press conference, Fed Head Jerome Powell managed to communicate three big lies in the space of an hour. The fact that bile spews from the mouth of a central banker isn’t all so surprising. However, having to...
by pentoport | Sep 14, 2020 | Commentary
September 14th 2020 The overvaluation of stocks relative to the economy has placed them in such rarefied space that the market is subject to dramatic and sudden air pockets. Our Inflation Deflation and Economic Cycle model is built to identify both cyclical and...
by pentoport | Sep 8, 2020 | Commentary
September 8th, 2020 The Fed has now officially changed its inflation target from 2% to one that averages above 2% in order to compensate for the years where inflation was below its target. First off, the Fed has a horrific track record with meeting its first and...
by pentoport | Aug 11, 2020 | Commentary
August 11, 2020 Bankrupt Balance sheets The US National debt has now soared to 130% of GDP; that $26.6 trillion equates to around 1,000% of Federal revenue. Our government will add $4 trillion to that dung pile this year alone, which is an incredible 20% of GDP. The...
by pentoport | Jul 20, 2020 | Commentary
July 20, 2020 The monthly U.S. budget deficit for June 2020 was a heart-stopping record $864 billion. For reference, last year’s deficit for all of fiscal 2019 was just under $1 trillion. In other words, the June deficit was almost as much as the entire amount...
