Operating at the Intersection of Technology and the Capital Markets
Tag: interest rates
Powell's Fed will continue to run its ultra-loose monetary policy for as long as possible in an effort to inflate the debt away. On Wednesday Powell will say more time is needed for the economy to recover before the Fed considers tightening interest rates. Powell will talk of transitory inflation. Powell will quote May's poor … Continue reading The Fed Won’t Change Its Position On Wednesday
The U.S. Bureau of Labor Statistics ("BLS"), publishes the Labor Participation Rate each month. The Labor Participation Rate accurately reflects the state of labor in the United States. The same government agency also publishes the Unemployment Rate each month (due Friday June 4th). We view the latter as a Government marketing metric as it significantly … Continue reading Labor Participation Outlook: June 2021Premium
Make no mistake, Biden's $2.3 Trillion "infrastructure" spending program and $1.8 Trillion "American Families" spending program will pass Congress. That's bad news for Americans and small business and good news for Amazon (AMZN) and Walmart (WMT). **Purchase our Amazon Kindle book "Stagflation Is Imminent": HERE First: we would not be having this conversation if the Federal … Continue reading A Tale of Two Cities
It is starting to feel like the 1970's with out of control fiscal spending, inflation and now gas lines. We only have gas lines in certain parts of the country today as local government officials exercised gas price controls during the Colonial Pipeline shutdown. We could very well see similar price control policies from the … Continue reading More Lines To Come With Price Controls
The Fed likely won't taper asset purchases this calendar year. It should, but it won't. **Purchase our Amazon Kindle book Stagflation Is Imminent: HERE We previously mentioned mid-term elections as one reason why the Fed won't take away the punch bowl. Second, the Labor Participation rate - a key economic indicator for the Fed - … Continue reading The Fed Will Not Taper In 2021. Inflation Is Not Transitory.
Perhaps that recommendation is a bit harsh and unexpected coming from me, someone who is a staunch advocate of strategic M&A. However, the fact is that interest rates are historically low and valuations will remain historically high until such time as interest rates begin to rise. As we recently wrote, equity valuations have the looming … Continue reading Put Your Strategic M&A Team On Ice
Treasury Secretary Janet Yellen is the second Government official in five days to mention that the U.S. economy may require interest rates to move higher so that the economy does not overheat (it overheated months ago in our view when one considers asset prices across most every asset category). Dallas Fed President Robert Kaplan stated … Continue reading Interest Rates To Inch Higher?
Fed Chair Powell does not understand the relationship between Federal welfare ("stimulus") programs and wage inflation. Per Fed Chair Powell's prepared remarks on Wednesday, Mr. Powell seems completely oblivious to the fact that fiscal "stimulus" programs are counterproductive to low-wage services sector employment. For example, Powell commented that he was concerned by the "level of … Continue reading Inflation Is Here To Stay. Powell Likely Has Lost Control.
Large, profitable Technology companies represent an increasing share of corporate profits. This phenomenon has enabled the corporate debt to pre-tax profit ratio to remain relatively stable since Q4 2017 with a MEAN multiple of 4.6x and a MEDIAN multiple of 4.4x over the Q4 2017 - Q4 2020 period. The outlier was the data collected … Continue reading Corporate Debt to Pre-Tax Profit Ratio Is Relatively Unchanged Since 2017
It is difficult to imagine a scenario in which the U.S. economy does not experience stagflation. Record debt levels, low labor participation, muted long-term Real GDP growth, persistent inflation and the fact that the Federal Reserve is limited in its options to fight inflation leads us to believe that stagflation is imminent. Our premium TEK2day … Continue reading Stagflation Is ImminentPremium
