Dec 19, 2016

Will Donald Trump Produce Any Economic Growth?

The Federal Reserve does not seem to believe that Donald Trump is going to do anything to produce economic growth because they were more optimistic last year when they knew that Obama was going to be the President than they are now, knowing that it is going to be Donald Trump.

Dec 16, 2016

The Housing Market Has Been Propped Up By The Fed, Not Ready To Stand Alone

Both the housing market and the auto market have been propped up by the Federal Reserve’s cheap money and artificially low interest rates. These markets may not be ready to stand alone. (Ford (F), General Motors (GM), Tesla Motors (TSLA), iShares Dow Jones US Real Estate (ETF) (IYR), Lennar Corporation (LEN), KB Home (KBH))

Dec 14, 2016

Markets: If Interest Rates Go Up, The Bubble Pricks

We have a bubble economy. If interest rates go up, the bubble pricks. If you move interest rates higher, by definition, stocks and real estate are less valuable. They are more valuable the lower the rate. If interest rates go up, their values come down, multiples have to go down. (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM), iShares Barclays 20+ Year Treasury Bond ETF (TLT), iShares Dow Jones US Real Estate (ETF) (IYR))

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