Tapped Out
Cutting taxes was not necessarily a bad idea. But increased spending eliminated the benefit. So did the ‘tariff’ program, which acts as a tax increase on Americans.
Commentary
Thunderclouds Overhead
The gap between the charged-up price action on Wall Street…and the depressing ground of the macro world….must be closed. What will spark a correction, we don’t know.
The Great Pruning
Major innovations begin by destroying wealth. New tech — from internal combustion engines to dot-coms to AI — offers to cut costs for both consumers and producers. AI may be exceptionally deflationary.
Expelled from Paradise
Surely faster growth will help earnings catch up to prices, right? No need for the bubble to pop? Today’s stocks may seem cheap when this growth surge is fully realized. Right?
Breaking Math
Speculators buy into bubbles, not investors. In the bubble psychology, speculators believe that they can buy high…and sell even higher.
From Bubble to Eternity
By almost all measures, US asset prices are in a bubble. Based on Cyclically Adjusted P/E ratios, the S&P 500 has been this high only one time in history — at the height of the Dot.com bubble.
