Category Archives: Economy

Economic Contraction Road Map

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Just a friendly reminder from your friends here at that we are in an economic contraction, not an expansion when viewing the big picture. Indeed, it is this site that has highlighted the little post-2012 expansion more vigorously than any other bearish leaning entity that I have seen, and earlier than most bullish entities I might add.

That was because of the Semiconductor Equipment ramp up → Palladium-Gold ratio → ISM upturn → Jobs upturn continuum we have been on. But that is a positive cycle within a much larger cycle that is very negative. Here’s the updated view of counter cyclical gold vs. cyclical commodities, which may be starting its next up turn. (more…)

Stumpf it

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Those promoting the bad GDP data should listen to Wells Fargo CEO John Stumpf who, like this cranky little spot in the financial media here at biiwii, thinks the US economy is “stronger than people think”.

Wells Fargo CEO: The US economy will surprise you

All you have to do is open your eyes and look at corporate profits and manufacturing, to name but two major pillars. Jobs is another, even considering the constant debates about the quality of said jobs. (more…)

Inflation: Alive & Well in Canada…Rate Hike Ahead?

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As Canadians, we are “privileged” to live in a country plagued by -40° C temperatures, ice storms, hurricanes, and tons of snow in the winter and +30° C temperatures, flooding, tornadoes, mosquitoes, and black flies in the spring and summer…and, we live in constant threat of earthquakes along the West Coast.

Now, we are “privileged” to learn that inflation is, indeed, alive and well in Canada. This report released today from Statistics Canada shows that the Consumer Price Index (CPI) rose 2.3% in the 12 months to May, following a 2.0% increase in April…their breakdown is as follows. (more…)

Clothing Naked Experts

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“You know what the difference is between an Economist/Analyst, and a Business owner? When a Business owner makes a prediction on his or her business and is wrong – the business could wind up in bankruptcy. When the Economist/Analyst makes a wrong prediction about business – they just make another prediction.”

I may not be the first to express it, yet it seems more relevant today than ever before in light of what is now becoming abundantly clear to near anyone with the slightest hint of common sense. Most of the so-called “experts” paraded across the financial media as to espouse their wisdom on either financial markets, or the global economy: are blatantly naked for anyone to see. (more…)

When Good Fundamentals Don’t Matter

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In a market that has been artificially-inflated for nearly six years and which is priced for perfection, companies are facing a situation in which, even with blowout earnings and revenues, they get curb-stomped. This is the shape of things to come for the market as a whole. Trees cannot grow to the sky. And Yellen is going to be left holding a gigantic bag of radioactive waste. Look no further than Ubiquiti Networks, which so far this morning has lost nearly a quarter of its market cap on the heels of a good report last night.