Monthly Archives: February, 2018

US Housing Is Becoming Unaffordable

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We’ve discussed the price to income ratio of housing in a previous article. This gave us an idea of how expensive housing has become. We’ll discuss some of best points why real estate is too expensive and then provide the counterpoint explaining why housing isn’t in a bubble. Housing Isn’t…CONTINUE READING

ECB Unwind Causes Monetary Conditions To Tighten

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In January, the ECB tapered its bond buying from €60 billion per month to €30 billion per month. Equally as important, the central bank is expected to stop its bond buying completely by September 2018. European economic growth has accelerated recently, but it’s unclear how much the economy was helped…CONTINUE READING

Gold vs Inflation: Not What You Expect

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We’ve had some readers question the Fed’s use of CPI as a measurement of price inflation. The chart below might satiate them as it shows the eight components of CPI. Medical costs have pushed inflation higher. Keep in mind, this is over a 17 year period. We’re not ignoring the…CONTINUE READING

Buying/Renting Home vs Investing In Stocks

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The conventional wisdom during the baby boom generation was that buying a house was a ticket to financial freedom. Because policy makers believed in this concept, since the late 90s there was an aggressive attempt to get people into homes they couldn’t afford. Obviously, over leveraging yourself with the purchase…CONTINUE READING

Consumer Prices Rise Highest Since 2007

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One of the major trends of 2018 is likely to be the acceleration of inflation growth, as we have discussed previously in the following articles: Why Inflation Will Increase In 2018 Long-Term Inflation Pressures The Fed has longed for inflation for years because it consistently has been below its goal…CONTINUE READING

Delinquencies & Savings Rate: Truth In Details

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Delinquency rates on credit cards are important because GDP is mostly driven by the consumer. If the consumer can’t borrow money to buy goods and services, a recession is in the cards. This is probably why the chart below has gone viral among the bearish investors. The delinquency rate on…CONTINUE READING

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