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Reporting season in full bloom: Oct 19-23
We will have earnings reports from more than 400 US companies this week, among them […]
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Are stocks cheap?
How do we determine if stocks are over- or undervalued? Future earnings estimates are, as the name suggests, just estimates (and often wrong). On top of that they suffer from a positive bias by the analyst community. Past (reported) earnings are at least real, but they do not hold much information about the future. One…
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Technical Indicators: Bollinger Bands
Bollinger Bands are a technical analysis tool invented by John Bollinger in the 1980s. How does it work? You basically take a moving average (eg 21 days) and lay around this trend a band by adding and subtracting sigma (volatility) times a konstant k. Now you get a channel. The observed stock (or index etc)…
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70% Capacity Utilization = no inflation
Would you raise your prices if you had 30% idle capacities? No, since the producer next door would be more than happy to increase production and sell his stuff at the lower price.
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US Monetary Base
Today we take a look at the growth of the US Monetary Base, and why inflation has not occurred. With M1 / M2 growth slowing down dramatically, and possibly turning negative, implications for the stock markets are negative.
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