by Gary Gordon | Nov 13, 2020
What if your family owed more than it owned? You could get by for a while. You could “rob Peter to pay Paul.” Eventually, though, persistent negative net worth would likely result in a declaration of bankruptcy. The same holds true for corporations. The...
by Gary Gordon | Nov 11, 2020
Federal Reserve intervention is the reason that stocks defied a protracted bear market in 2020. The central bank of the United States immediately intervened in March, slashing overnight borrowing rates to 0%. The Fed also printed trillions of dollars to buy bonds,...
by Gary Gordon | Nov 6, 2020
Election outcomes tend to provide clarity. Even contested ones. For example, would one party in the U.S. control the executive branch as well as the legislative branch? At the moment, it would appear that this will not come to pass. One party is going to control the...
by Gary Gordon | Nov 3, 2020
One might have anticipated that risk assets would trade sideways on the day of the election. After all, unusual levels of uncertainty tend to keep investors in a wait-n-see mode. However, stocks immediately rocketed more that 2% out of the morning gate. And that...
by Gary Gordon | Oct 30, 2020
What might the 2020 stock bubble be telling us? When mega-cap tech stars handily surpass earnings expectations, but still plummet? Perhaps there is some recognition of effervescent valuations. Warren Buffett’s indicator, market-cap-to-GDP, shows the disconnect...
