By Jonathan Baird - January 15, 2022 The velocity of money (the frequency at which money changes hands) sits near all-time lows and is again slowing, following a short-lived stimulus-induced boost in 2020.The velocity of money reached a peak in the late 1990s before declining in response to the crash of the internet stock [...]
A long-time investment maxim is that it pays to watch the stock transactions of company insiders, for they are in the best position to know the future earnings prospects of their company’s. Indeed, academic studies have confirmed that extremes of insider buying or selling are a useful leading indicatorof share prices. Various services [...]
Global stock markets, fueled by a combination of unprecedented fiscal and monetary stimulus and extreme investor optimism, have soared to match the value of global GDP. The only previous example of this behaviour occurred at the peak of the internet bubble at the turn of the century.The previous example of this phenomenon can [...]
The total earnings return on equities (calculated as the inverse of the P/E ratio plus dividends) are currently negative for the first time in history. Inflationary pressures and the lowest interest rates in 5000 years have produced this toxic situation for investors.The factors that have produced the current negative return environment: negative real [...]
