Category Archives: Economics & Fundamentals

Enough with TINA: There is an Alternative to Equities

Our latest piece in the Globe & Mail explores the argument that stock markets must continue endlessly spiraling upward. Why? Because rates are to remain between negative and to low (which we agree with), and therefor there is no alternative to pure equity risk (we

The Global Crisis for Savers Continues

I have suggested for years that zero and (now) negative interest rate policies that central banks have employed are stealing money from the savers to prop up the economy and it’s not working very well. One estimate I saw recently has transferred over 2 trillion

Why work for a living when your house out-earns you?

Why work for a living when your house out-earns you? In a “truth is stranger than fiction” moment, the price appreciation of homes in greater Vancouver have produced more than the sum total of all work done by every single human being that lives in

Are Share Buy-backs good or bad for investors?

Share Buybacks have been a very popular use of corporate profits in the past few years. By some estimates, they have “artificially” increased earnings per share by over 25 per cent in the past few years. This would suggest that if we factor in non-adjusted

April Showers, but No May Flowers

Stock analysts (bottom up) remain on crack. They almost always love their stocks and they basically get paid to tell a good story on why you should buy them. Very few are unbiased even after years of regulatory changes and the fact that they swear

Credit Spreads and Bank Underperformance

This week on Berman’s Call: Leading Indicators: Credit Spreads and Bank Underperformance There is nothing more toxic to growth than too much leverage. We have said for years that the bond market is far smarter about the outlook for the economy than the stock market.

Are we still in a bear market?

As we urged investors to see the opportunity in markets earlier this year, we’ve had a great bounce, but viewers ask – are we still in a bear market? In a word, yes. In a few more words: http://www.bnn.ca/Video/player.aspx?vid=828443