How a Market Pullback Can Become a Panic

Healthy corporations have manageable debt levels, rising revenue and increasing profits. Less healthy companies? Sales stagnate, earnings diminish and debt loads explode higher. Even before the pandemic, there were signs of corporate stress. Debts relative to gross...

A Penny for Your Thoughts

There has never been a larger wave of equity inflows. In other words, everybody wants in the stock pool. And not just the largest companies with the strongest balance sheets. Volume for the least viable, most aggressive stock assets — penny stocks — has...

Unnerving Excess in 3 Charts

Extremely easy access to cheap money. That’s what inflated the dotcom blimp in the late 1990s. That’s what pumped up the housing balloon in the 2000s. And that’s what is responsible for the “Everything Bubble” today. How frothy? Here are...

The Unrestrained Reflation of Today’s Stock Bubble

The stock market appears unstoppable. It is setting all-time records on a daily basis. On the other hand, the number of keyword searches for the term ‘stock market bubble’ has never been higher. The number of term searches is two times greater than in any...

Searching for a Stock Bubble Pin

When money creating powers flood the financial system with cash and cash equivalents, market participants have a choice to make. They can hold the cash, securing a loss in purchasing power if they hold too long. Or they can acquire assets like high-yielding bonds,...

When Will the Game Stop?

The more that global central banks create money (a.k.a. “liquidity”), the more that it overwhelms the supply of stock shares. Too much money is chasing a limited amount of shares. Indeed, the dynamics currently favor skyrocketing stock movement. At least...