TrimTabs’ Charles Biderman joined Pimm Fox and Carol Massar on Bloomberg’s Taking Stock Podcast to discuss how companies are either buying back shares or purchasing companies with cash because interest rates are at zero percent. You can listen to the audio here.
Princeton Professor and NY Times columnist Paul Krugman must be feeling the heat. In a recent blog he referred to David Stockman’s March 31 brilliant NY Times oped was “pathetic and embarrassing.” Why do I say Stockman’s article was brilliant? Stockman’s main point is that, “Sooner or later, within a few years, this latest Wall Street bubble, inflated by an egregious flood of phony money from the Federal Reserve rather than real economic gains, will explode.” Read More
The US and global stock markets and economies will be immediately negatively impacted by higher US taxes, and that appears where we are headed with or without a fiscal cliff deal. It appears that the best deal we can expect, if there is one, would raises taxes by $200 billion annually. That would result in an annualized 3% drop in after-tax take home pay. Read More
The TrimTabs Market Timing Index is a proprietary measure based on the flows of U.S. equity exchange-traded funds. You can buy market calls based on the index according to how frequently you want to trade. When you subscribe, you’ll receive an email message every two weeks, every four weeks, or every eight weeks telling you exactly how to trade for the upcoming period based on the index. All you need to trade is an S&P 500 index ETF. Read More
Today’s dead cat bounce will fool the short term greedy into getting back into the stock market. All that really happened was that this past Sunday both Democrats and Republicans went on TV and made nice, nice to each other. The politicos said that they would work diligently on a solution to the fiscal cliff. And then Congress left Washington on holiday until the middle of next week and Obama went to Burma. Read More
There are two parts to the fiscal cliff equation. Government spending on services and taxes. Unfortunately almost all the discussion about how to fix the long term problem has been about taxes. Focusing on taxes to raise revenues to provide government services requires making a key assumption that governments can effectively provide services. But what if the real problem is that the US government by its nature is incapable of providing cost effective services? I say that government spending on services are not only cost ineffective but probably harmful to the overall economy. Read More