Money and Finance
- Hussman Weekly Market Comment: The Other Side Of The Mountain
Link to: The Other Side of the MountainThe financial markets are at a transition that reflects tension between two realities. The first is that the Federal Reserve’s policy of quantitative easing has driven the stock market to valuations associated...
- Hussman Weekly Market Comment: Superstition Ain't The Way
“The problem with QE is that it works in practice but it doesn’t work in theory.” - Ben Bernanke, Outgoing Federal Reserve Chairman, January 16, 2014 "When you believe in things that you don't understand, then you suffer. Superstition...
- Doug Barnett's Latest Market Update
After a macro discussion, he then also goes into a little detail on his 4 largest holdings. Global equity markets ended in different directions. The US and European stock markets closed positively, supported by the improvement in global economic data,...
- Hussman Funds Semi-annual Report
The U.S. economy appears suspended at the boundary between tepid growth and recession, requiring a trillion-dollar federal deficit and unprecedented monetary easing simply to maintain that position. The Federal Reserve continues a well-known and fully-announced...
- Hoisington Q3 2012 Letter
Growth Recession Entering the final quarter of the year, domestic and global economic conditions are extremely fragile. Across the globe, countries are in outright recession, and in some instances where aggregate growth is holding above the zero line,...
Money and Finance
Hoisington Q1 2014 Letter
Link to: Hoisington Q1 2014 Letter
The Federal Open Market Committee (FOMC) has continuously been overly optimistic regarding its expectations for economic growth in the United States since the last recession ended in 2009. If their annual forecasts had been realized over the past four years, then at the end of 2013 the U.S. economy should have been approximately $1 trillion, or 6%, larger. The preponderance of research suggests that the FOMC has been incorrect in its presumption of the effectiveness of quantitative easing (QE) on boosting economic growth. This faulty track record calls into question their latest prediction of 2.9% real GDP growth for 2014 and 3.4% for 2015.
A major reason for the FOMC’s overly optimistic forecast for economic growth and its incorrect view of the effectiveness of quantitative easing is the reliance on the so-called “wealth effect”, described as a change in consumer wealth which results in a change in consumer spending.
- Hussman Weekly Market Comment: The Other Side Of The Mountain
Link to: The Other Side of the MountainThe financial markets are at a transition that reflects tension between two realities. The first is that the Federal Reserve’s policy of quantitative easing has driven the stock market to valuations associated...
- Hussman Weekly Market Comment: Superstition Ain't The Way
“The problem with QE is that it works in practice but it doesn’t work in theory.” - Ben Bernanke, Outgoing Federal Reserve Chairman, January 16, 2014 "When you believe in things that you don't understand, then you suffer. Superstition...
- Doug Barnett's Latest Market Update
After a macro discussion, he then also goes into a little detail on his 4 largest holdings. Global equity markets ended in different directions. The US and European stock markets closed positively, supported by the improvement in global economic data,...
- Hussman Funds Semi-annual Report
The U.S. economy appears suspended at the boundary between tepid growth and recession, requiring a trillion-dollar federal deficit and unprecedented monetary easing simply to maintain that position. The Federal Reserve continues a well-known and fully-announced...
- Hoisington Q3 2012 Letter
Growth Recession Entering the final quarter of the year, domestic and global economic conditions are extremely fragile. Across the globe, countries are in outright recession, and in some instances where aggregate growth is holding above the zero line,...