Normally, equity valuations reflect the present value of future cash flows that are primarily a function of current cash flows, growth expectations, and then the discount rate. Most fundamentalists will look at the cash flow generation in both the short and long-term. With equity valuations at their record highs, investors, in theory, are showing confidence […]
COMMENT: It is fascinating how your work has been so accurate on forecasting the business cycle, yet you are probably the most ignored by the mainstream media. The only possible reason for this is that they are not interested in someone who can forecast the business cycle when the general belief is that governments can […]
ASIA: President Trump tweeted today that China has let us (the U.S.) down by not purchasing American agricultural products as promised. This could impact the possibility of an amicable trade agreement. The positive reports indicating progress seem to have no positive end goal. Trump concluded his tweet with “hope they will soon,” a more optimistic […]
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Bank of Japan (BOJ) Governor Haruhiko Kuroda publicly stated that it may maintain ultra-low rates for a further period of well over a year. However, he also warned against the idea of propping up the economy through unlimited money printing to finance government spending. That may sound nice, but the Bank of Japan is trapped. […]
QUESTION: Mr. Armstrong; could you explain this whole Customs Union issue in BREXIT? Some see it as a great idea, others say it is surrendering sovereignty to Brussels. SN ANSWER: A customs union, some claim, would help businesses that send goods back and forth to the European Union. So it would be of interest to […]
Paris is adamant that the EU should not renegotiate the Brexit deal. The French want to punish the British at all costs, and that means at the expense of their own employment and markets. Amélie de Montchalin, France’s minister for European affairs, said, “If the UK wants to leave the EU, and in an orderly […]
ASIA: Russia reported that China has announced plans to open six new free zones as an attempt to open up its economy (with external pressure to do so). China also announced that they will expand the existing Shanghai free zone. Spokesperson Gao Feng said, “China has been opening up more sectors of the economy as […]
QUESTION: you spoke about trump draining the swamp, how would you drain the swamp, we agree it needs draining? tg ANSWER: The first thing you have to do is eliminate the control of the regulatory agencies by the bankers. Enough is enough. We must start there. We will NEVER see any hope for the future […]
QUESTION: Your correlations about the weather have been very interesting. What I understand is that as the climate has shifted into solar minimum, the weather gets more volatile with colder winters and spike heat waves in summer that decline in duration. Then for some reason, this is also the same period when volcanoes become more […]
