With A GAAP PE Of 19x, "Growth Is All That Matters Now"

In a market in which “one-time, recurring adjustments” such as JPM’s quarterly (and quite recurring) multi-billion addbacks consistently mean the difference between meeting and beating expectations for corporations, one long-forgotten aspect of earning… [...]

There Are 199,235 "Ultra High Net Worth" People In The World With Over $30 Million In Assets

It is no secret that the bulk of “very rich people” in recent years has been created in Asia (where some $15 trillion in liquidity has entered broad circulation in just the past five years). As the FT reports, “Asia is producing more new wealth than an… [...]

Whatever You Do, Don’t Short Stocks On These Three Days In December

Regular readers know that at the end of every month we look at the next month’s POMO schedule, and urgently advise against shorting stocks on POMO days. That in the New Normal POMO days are pretty much every single day, may have something to do with wh… [...]

The Global Leverage Cycle: You Are Here

While one can make an argument that the central banks have now destroyed all traditional “cycles”, including the economic “virtuous cycle”, the business cycle and even the leverage cycle, the question remains how much longer can the Fed et al defy mean… [...]

A Look Inside The New York Fed’s Trading Desk: Then And Now

In late 2010, we wrote: “The World’s Most Important Trading Desk Is Not At Goldman, But Is On The 9th Floor Of 33 Liberty Street” in which we said “even though our good Samaritan friends at One New York Plaza may take offense to this designation, the t… [...]

No CapEx Recovery: Durable Goods Disappoint As Capital Goods Orders And Shipments Decline

Back in April 2012, before the topic of the Capital Expenditures crunch was even touched by the mainstream media, we penned “How The Fed’s Visible Hand Is Forcing Corporate Cash Mismanagement” in which we explained why as a result of faulty Fed policy … [...]

Spoiler Alert: Godot Never Shows Up

Submitted by Ben Hunt of Epsilon Theory The 18th Brumaire of Janet Yellen One of the more painful lessons in investing is that the prudent investor (or ‘value investor’ if you prefer) almost invariably must forego plenty of fun at the top end… [...]

NYSE "Breaks" As Twitter Slumps To New Record Low

Even as the Dot-Com 2.0 exasperates to new highs, it seems Twitter – the darling of the no-profit-but-lots-of-hype recent IPOs – is losing its lustre. TWTR is down 4% today to new lows post-IPO under $40. The catalyst for this latest slump appears to b… [...]

A Look Inside The "New Normal" McMansion

And they’re back: 2,277 sq.ft. – Median new-home size in 2007 2,306 sq. ft. – Median new-home size in 2012 Just as that crowning achievement of the last housing bubble, the McMansions, have once again returned with the second and final return of the … [...]

BTFATH Continues; Dow Opens +70 Points, Oil -1%

An Iran deal that is kinda sorta a deal but really is not a deal is all we need in the new normal to justify adding another few fractions onto the equity multiple valuation tree of hope. The S&P is up 9 points, Dow up 70 points, and WTI Crude is do… [...]