The Enigma of a Divergence: The Uncertainty Index vs. the Volatility Index
In last week’s commentary we wrote that the earnings, production, and income pictures look good and that the market has legs to make further earnings. The market continued in its upswing mode ignoring the above-average high multiples, but also the rising uncertainty...Corporate Earnings, Production, and Hourly Wages: No Enigma to Decipher
More than 65% of companies that have reported earnings in the last few days have beaten estimates, which is a little bit higher than the long-term average. So and as the graph below shows, it seems that the earnings recession is over and that corporate profits are in...Worldviews, Solipsism, and Chissiaran: A Random Walk Down the Boulevard of Invincibility
Collective hallucinations are dangerous. Undershooting carries risks, but overshooting could have much more serious consequences. Ignoring history is detrimental. Hubris backfires and lack of foresight demonstrates foolishness. My fear is that in this meta-modernity...New Market Highs and Underperformers: Fundamentals Meet Technical Charts
The market celebrated a Dow Jones Industrial Average that reached 20,000 yesterday. Is this too much of good news? Is it sustainable and could it be that investors are carried away? Could a correction erase the good performance since November given the high market...Sign Up for Our Publications
