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Trader, investor, researcher, writer. I am also on a mission to promote sound money, sound credit and free market capitalism, and to campaign against an active Federal Reserve, a cartel that should return to a passive Lender of Last Resort.
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  • Money, Credit And Collateral: Why Quality And Value Matter

    Money, Credit and Collateral: Why Quality and Value Matter

    May 24 6:08 PM | Link | Comment!
  • Corporate Profits At An All-Time High: Sustainable?

    (click to enlarge)Corporate Profits After Tax

    This series of U.S. corporate profits after tax has made headlines for the last few quarters, and is partially responsible for driving U.S. equity markets higher. Among the reasons for the climb: companies have been able to drive productivity through cost cutting measures (bottom line), whereas average revenue growth has been flat (top line). [See link to Sageworks Private Company Indicator for 12-month and 5-year charts on average annual sales growth.] Is this sustainable, given rising tax rates, regulatory costs, government spending and inflation? The Fed has targeted higher inflation through monetary stimulus, which has in turn throttled the U.S. equity markets higher. Verdict: Unsustainable, unless companies can grow the topline, but this will likely require a rollback of tax rates, regulatory costs and crowding out government spending, not to mention a non-punitive modification to the corporate repatriation tax.

    I'd add that wages/GDP is at a multi-decade low, after peaking in 1970:

    (click to enlarge)

    It is no surprise why this has occurred: wages are suppressed by ever increasing government fiscal, regulatory and labor policies and the inflation caused by the monetary policies that "provide cover."

    Feb 07 8:48 PM | Link | Comment!
  • Why Investors Need New Markets

    Why Investors Need New Markets

    Feb 04 2:27 PM | Link | Comment!
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  • Advice to APSO.OB - This company is in bankruptcy, after massive insider selling and mismanagement by previous management. STAY AWAY.
    Dec 1, 2009
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