House of Cards

With U.S. economic growth slowing and profits falling, our Federal Reserve is between a rock and a hard place.  Just six months ago, they expected a more robust economy and indicated four interest rate hikes for 2016. But that was quickly reduced to just two hikes...

A Bug Looking for a Windshield

China enjoyed tremendous GDP growth for many years as the country constructed vast cities and built highways to connect them.  Unfortunately, many of the cities and roads are empty – currently rendering these assets useless – and no income is being...

Sell in May and Go Away

The second-longest bull market for U.S. stocks continues to struggle.  Since last summer, the market has twice dropped over 10%.  Although the market rallied back on both occasions, it still finds itself below its May 2015 high.  Even that high was reached by...

Government to the Rescue?

Once again, investors are hoping they will be rescued by our Federal Reserve.  This cycle has repeated itself several times since our last recession:  The Fed signals there will be no more easy money yet economic growth slows.  Investors become worried and the stock...

Global Slowdown

The U.S. economy has now experienced its fourth quarter in a row of flat or lower earnings.  On average, S&P 500 earnings are expected to drop 7% to 8% in the first quarter of 2016. The stock market is likely to stay in a trading range until there is greater...