December 5, 1996 (S&P 500 — 743.25) then-Fed-Chair Alan Greenspan warned us about the “irrational exuberance” he felt was creeping into the market (the “Tech Bubble”). “Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the…
Tag: Alan Greenspan
Setting the table for the next disaster
It has been my position that all things economic (Booms, Busts, Recessions, Depressions and Collapses a la 2008) are normal and run in repeating but unpredictable cycles. Knowing and being at peace with this can be very comforting in crisis times. It is simple. We have seen all of this before, despite the differing facts…
Apres le deluge, Le Summer Rally?
My apologies to the French and the late King Louis XV, for slightly reworking a phrase attributed to him, “Apres moi le deluge” (After me the deluge). The king had it right. Within 18 years of his death the French Revolution erupted. A better word for “deluge” might be “cataclysm.” Apres “Brexit” le deluge? Based on…
Session 108–“I Have a sick feeling…”
This is how technician, Ralph Acampora, frames the type of performance that might be ahead for the Russell 2000 and Nasdaq composite indices over the next few months. (Acampora interview–5/15/14) There is a part of me that finds his thinking very plausible, as the stock and bond markets have been acting very strangely of late….
Session 90-In StockMarket Land, the difference between apples and oranges is often hard to discern
“Markets flooded with cash, should Fed prep to stamp out risk(Reuters via CNBC 2/21/2014)?” First of all, this is a stupid question as their mandate deals with unemployment and inflation. They are only the ‘risk police’ when it comes to risk of inflation. They can warn about “irrational exuberance”, but it is not their job…