by Gary Gordon | Mar 12, 2020
Remember the Tax Cuts and Jobs Act of 2017? Small- and mid-sized corporations should have used the extra money on capital expenditures and debt repayment. Instead, most chose to spend on stock share buybacks. Profitability hopes soared in 2017. And through the magic...
by Gary Gordon | Mar 10, 2020
Theoretically, a strong consumer would be well-positioned to acquire a host of durable goods. They should be able to purchase everything from appliances to furniture, electronics to sporting goods, jewelry to medical equipment. Would it surprise you, then, that...
by Gary Gordon | Mar 8, 2020
You have chosen to blame the COVID-19 pin prick. Yet, you should have understood that the Federal Reserve’s obsession with recession prevention created a monstrous stock bubble. I did not tell you when falling stock prices would cease to be a buy-the-dip opportunity....
by Gary Gordon | Mar 6, 2020
The 2020 stock bubble is in trouble. Here are several telltale signs: (1) The CBOE’s VIX Volatility Index recently rocketed in ways that few could have imagined. (2) A zero-percent yielding precious metal has broken out to multi-year highs. (3) Due in large part...
by Gary Gordon | Mar 5, 2020
The 2020 stock bubble has yet another hole to patch… widening credit spreads. In particular, the spread between investment grade bonds via LQD and junk bonds via HYG are expanding. High yield credit (HYG) outperformed investment grade (LQD) up until the 3rd...
