Category: Invest

Here is what you might have missed from the RIA Crew last week. A compilation of our best blogs, newsletter, podcasts, the daily radio show and commentary from RIAPRO.NET.

The world of traditional money management, as we know it, has been turned on its head with zero interest rates and financial repression.

As bad as this data looks, things will get much worse, especially retail sales. The report above was for March. There is no reason to expect a quick spring back when people do return to work, which now looks more like mid-May or early June than the end of April.

So, with the entire U.S. economy shut down, 15-20% unemployment, and -20% GDP, earnings are only expected to decline by 10%? History suggests this won't be the case. We estimate just how big the crash will be.

The Fed is trapped by a choice. Allow capitalism to reign by allowing corporations to fail and restructure. Or bail out them out to avoid the short-term pain and further widen the wealth gap.

Here is what you might have missed from the RIA Crew last week. A compilation of our best blogs, newsletter, podcasts, the daily radio show and commentary from RIAPRO.NET.

As bad as this data looks, things will get much worse, especially retail sales. The report above was for March. There is no reason to expect a quick spring back when people do return to work, which now looks more like mid-May or early June than the end of April.

What we are seeing is not capitalism at all. Bernie Sanders’ complaints were about the way socialism is applied to the corporate elite. It is an inauthentic argument from both directions. Capitalism does not rely on bailouts or preferential treatment. Capitalism depends on the rule of law being upheld equally for citizens and business owners.

What happens next depends on whether the current situation is a 2008-like situation or not. If it is, we will most likely sell-off again and retest the recent lows. If it is not, we are probably in for a tough slog. The true test will be the stock market’s reaction to the inevitable parade of negative news coming.