News and Trends

Stocks are the most overvalued since at least the 1980s based on one measure- CNBC--1.16.20
The price-earnings to growth ratio sits at its highest level since Bank of America started tracking the data in 1986. Currently, the simple price-to-earnings ratio is at 18.4 times, hitting a level the ratio hasn't seen since 2002.

U.S. and China tiptoe around holes in new trade agreement- Reuters--1.16.20
The U.S. and China have signed an initial trade deal on Wednesday. The deal fails to address structural economic issues that led to the trade conflict and does not fully eliminate the tariffs that have slowed the global economy.

Investors are right to reboot worries over trade, HSBC strategist says- Market Watch--1.15.20
The phase-one trade deal between the U.S. and China has been signed on Wednesday, but uncertainty still lingers. Tensions around trade are still not fully resolved and "there are still concerns about the macro outlook."

House transmits Trump impeachment articles to Senate, paving way for historic trial- Fox News--1.15.20
The House of Representatives voted Wednesday to transmit the articles of impeachment against President Trump to the Senate. House Speaker Nancy Pelosi officially signed the articles Wednesday afternoon during an "engrossment ceremony."

U.S. employment growth slows; labor market tightening- Reuters--1.10.20
U.S. job growth slowed in December after surging in the prior month. With the labor market tightening further, economists believe the long-awaited slowdown in job growth will happen this year.

Central Bankers Are Quietly Freaking Out About How To Fight The Next Recession - Forbes--1.10.20
The world's top central bank officials are concerned about how to fight the next recession. According to one expert, central banks are running low on fuel and have less ammunition to fight off a recession.

Nearly all corporate CFOs say the economy is going to slow and the stock market is overvalued- CNBC--1.9.20
A group of surveyed chief financial officers said the economy will slow in 2020. According to 77% of respondents, stock market averages are overvalued.

World Bank warns of global debt crisis amid borrowing buildup- The Guardian--1.8.20
The World Bank has warned of the risk of a global debt crisis after warning of the biggest buildup in borrowing in the past 50 years.

Trump says US will hit Iran with ‘punishing economic sanctions’ after attacks on Iraqi bases- CNBC--1.8.20
President Trump said the U.S. will "immediately impose additional punishing economic sanctions" on Iran, representing a decision not to escalate a military confrontation after Iran fired missiles at bases in Iraq.

Iran fires missiles at two bases housing U.S. troops in Iraq- Market Watch--1.7.20
Iran struck back at the United States early Wednesday, firing a series of ballistic missiles at two military bases in Iraq housing American troops in a major escalation between the two countries.

US trade deficit falls more than expected to hit lowest level since Trump took office- CNBC--1.7.20
The U.S. trade deficit contracted $43.1 billion in November, the lowest level since President Trump took office. The reading came as the U.S. and China continued trade negotiations that ultimately led to a phase-one agreement which is expected to be signed later this month.

Ben Bernanke says the Fed shouldn’t rule out using negative interest rates- CNBC--1.6.20
Over the weekend, former Federal Reserve Chairman Ben Bernanke said that the central bank should consider using negative interest rates during the next downturn. In addition to negative rates, Bernanke endorsed quantitative easing.

Central Banks Are the Biggest Risk to the Economy in 2020- Yahoo! Finance--1.3.20
Central banks have been an unconventional source of strength for the economy this decade, but also poses as its biggest risk. Central banks have been printing money for years and it will be extremely hard for them to reverse this trend.

‘Dangerous escalation’ and ‘severe revenge’: The world responds to the US killing of Iran’s top general- CNBC--1.3.20
A Thursday night U.S. airstrike has killed Iran's military General Qasem Soleimani. As tensions escalate between the two nations, oil prices spiked while U.S. stocks tanked.

US manufacturing plunges deeper into recession- CNN Business--1.3.20
American's manufacturing has contracted for the fifth consecutive month in December, registering a worse drop than expected. Uncertainties surrounding the U.S.-China trade war weighed on the sector last month.

A 'catastrophic' market crash could come in 2020 if this indicator turns surprisingly south- Yahoo! Finance--12.30.19
The U.S. jobs market needs to stay solid in 2020 or the stock market could be in trouble. One expert claims that if investors see any employment weakness, that could lead to a catastrophic crash for the equity markets.

The Decade of Debt: big deals, bigger risk- Reuters--12.29.19
During the last ten years, corporate bond debt outstanding rocketed more than 50% and will soon top $10 trillion, versus about $6 trillion at the end of the previous decade. The largest U.S. companies accound for roughly 70% of that.

Stock market bubble is forming and a 50% plunge is inevitable: strategist- Yahoo! Finance--12.26.19
The "everything rally" engulfing Wall Street right now as a classic asset bubble waiting to pop sometime in 2020, according to one expert. By "everything rally" they mean assets of all kinds are in major rally mode almost in unison.

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