Da Bears

There’s one thing that everyone should know about bear markets. They do not end without capitulation. For instance, in recessionary bear markets, individual investors dramatically lower their stock allocation. In the 2000-2002 bear, individual investors dropped...

Profit Margins: The Next Shoe to Drop

The S&P 500 has not performed this poorly in the first six months of a year since 1970. The picture is even uglier for the growth-oriented Nasdaq. Bubbly asset prices stayed frothy during the Federal Reserve’s money printing spree and zero percent interest...

About Those Profits

Small company stocks are down roughly 25% YTD. They’re down closer to 30% from their lofty November 2021 heights. That’s making some folks, including myself, take a second look at overlooked smaller companies listed on the exchanges. On some measures, in...

Getting the Recession They Want

The chair of the Federal Reserve, Jerome Powell, appeared before the U.S. Senate Banking Committee yesterday (6/22/2002). He acknowledged that a recession could result from the Fed’s battle against inflation. “It’s certainly a possibility,” he...

Is the Worst Behind Us?

How scary is the “double whammy” of higher inflation and higher borrowing costs? Businesses have never been more pessimistic about the near-term future. Companies may be taking their cues from consumers. In particular, people are unlikely to spend on...