This week we’ll begin with our monthly and weekly forecasts of the currency pairs worth watching. The first part of our forecast is based upon our research of the past 11 years of Forex prices, which show that the following methodologies have all produced profitable results: * Trading the two currencies that are trending the most strongly […]

The Federal Reserve has signaled its desire to raise interest rates. In this video, I’ll consider whether you need to take any steps to prepare for higher interest rates. There are three primary areas of your financial life to review in preparation for higher rates on the way: stocks, bonds, and debt. Let’s look at […]

Whatever you do, don’t you try and say we didn’t warn you. Time after time, post after post, we’ve said the same thing: high yield is a bubble. The fundamentals are bad, the rally is overdone, and the spread compression off last year’s wides is nothing short of spectacular. Now, we’re seeing that bubble burst. If […]

After the inflation in P/E multiples has sent the S&P 500 to to a level above the 90% percentile of all historical valuations, Goldman has called a time out, and says that there will be no more multiple expansion. As a result only one thing will push stock prices higher “as equity valuations compress as interest […]

Hiro Ito, who updates our de jure financial openness index (sometimes known as the Chinn-Ito index), has recently calculated GDP-weighted averages of the indices for country categories. The stylized facts regarding the evolution of openness changes, particularly with regard to emerging market economies. First, here are the typically reported simple average series, standardized to range between 0 and […]