Posts by Andrew Stotz

Chart of the Day: For nearly 10 years bonds outperformed stocks; driven by steady fall in interest rates. Rising interest rates would be bad for both asset classes unless the Trump administration can jump start corporate profits.

Chart of the Day: Rally was partially fueled by near-zero interest rates. Without a sustainable rise in profit margins US stock market rally could be finished.

Chart of the Day: The US stock market is now up 215%. Of the last three stock market rallies, this is the longest at 97 months and it is about to be the highest.

Chart of the Day: Relatively low US profit margin means there is a chance for profit recovery. But for now, stock prices don’t seem to be supported by earnings.

Chart of the Day: Fed has an inflation target of 2% and an unemployment target of 5%. With both targets now hit the pressure on the Fed is to start to raise rates.

Chart of the Day: Low rates allowed US Government debt to double with no rise in interest spending. But, if rates slowly double interest as a percentage of total spending would double to 10%.

Chart of the Day: Since 1987 short-term rate fell 91% to 0.5%. Long-term rate fell 62% to 3.0%. Falling interest rates, stocks up 745%.

Chart of the Day: Normal rate of 2.7% would mean massive 5x increase in interest burden. The interest cost burden of a normal interest rate is now massive.

Chart of the Day: Short-term rate of zero for seven years following the global financial crisis in 2008. Normal rate of 2.7% would mean massive 5x increase in short-term rates.