Economic Insights

Did Goldman Sachs destroy a persistent myth about investing in stocks? Sam Ro recently suggested such was the case for the “sacred CAPE ratio.”

Bailouts are the root cause of the dysfunction of capitalism and the demise of free markets.

Recession risk is rising rapidly. In fact, it is possible that we may already be in one.

Oil spikes have historically negatively impacted economic outcomes. As the chart below shows, oil spikes typically are short-lived due to some exogenous geopolitical event. However, as was the case from 2003-2008, fundamental concerns, in this case, the fear of "peak oil," can lead to more extended periods of higher prices.

Volatility has plagued the markets so far in 2022 as steadfast inflation at almost 8% (a 40 year high), geopolitical strife from the Russia-Ukraine war, commodity price appreciation from agricultural products to industrial metals (because of inflationary pricing and geopolitical sanction hurting supply), and the Federal Reserve’s quantitative tightening agenda (to tame inflation) have been risk-on trades for markets, highlighting macroeconomic uncertainty and projecting a possible slowdown in GDP growth globally.

It is common knowledge that Russia is a major exporter of oil and natural gas. Just the fear of disruption of Russian energy exports has sent oil and natural gas markets into a tizzy. Russia, however, is not just a Slavic Saudi Arabia.

Greedy corporations are not causing inflation. Such is despite the claims of many of those on the political left that failed to understand the very basics of economic supply and demand.

Greedy corporations are not causing inflation. Such is despite the claims of many of those on the political left that failed to understand the very basics of economic supply and demand.