Category Archives: Investments & Investing

30-Year Anniversary of “Black Monday” – Dow Down 23%

Today is the 30th anniversary of “Black Monday,” October 19, 1987, when the Dow Jones Industrial Average plunged 508.3 points, or almost 23%, in that one day. It was and is the worst single day in US stock market history. At today’s lofty levels, a decline of 23% in a single day would mean the…

2Q GDP Hits 3%, Yet 78% Still Live Paycheck to Paycheck

The Commerce Department reported yesterday that 2Q GDP rose at an annual rate of 3.0%, the best showing in more than two years and up from the initial estimate of 2.6%. The report was stronger than expected and was spurred by a bounce in consumer spending and business investment. While yesterday’s report was a welcome…

Fed Confirms Balance Sheet Reduction Just Ahead

In my August 8 Forecasts & Trends E-Letter, I suggested that the Fed Open Market Committee (FOMC) may vote to begin the process of reducing the size of its massive $4.5 trillion balance sheet at its next policy meeting on September 19-20 – in lieu of hiking the Fed Funds rate a third time this…

Something Is Wrong With the U.S. Economy

Over the last several months, we’ve seen a significant amount of encouraging US economic data. Most notable is the fact that consumer confidence ended last year at the highest level since 2007, and small business optimism was the highest since 2004. Both indexes have continued to rise this year. With confidence at these levels, one…

Fund Managers: Stocks Now Most Overvalued Since 2000

Professional fund managers now say US stocks are more overvalued today than they have been in nearly 20 years, according to a new survey done last week by Bank of America Merrill Lynch (BAML). The latest BAML survey found that a net 34% of fund managers now believe US equities are overvalued compared with other…