Payday Loans Now Bears Eat Bulls - Analysis of financial markets & the U.S. economy.
  • Current Conditions

  • Current Conditions

    Current Conditions

    The stock market is still very overvalued—the most overvalued since the bull market began in 2009. Investors should expect very low returns over the next 5-10 years.

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    One of the major investment firms that does outstanding valuation work is Grantham Mayo (GMO). Below are their latest forecasts of seven-year returns for various asset classes.

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    Investor sentiment is highly bullish, but might have rolled over.

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    In spite of the the stock market’s new all-time high made this past week, momentum may be rolling over. From here on, I expect declines to be very sharp, driven by trader and hedge fund sentiment shifts.

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    The economy is likely to continue its slow growth.

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    The expected return from bonds is low, but better than for stocks.

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    As investors “reach” for income in their portfolios, they have been taking on increasing risk, as evidenced by the low yields and spreads in junk corporate bonds.

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  • Everything Has Its Time

     For everything there is a season, and a time for every matter under heaven- Ecclesiastes 3:1

    About three and one-half years ago, I began posting on BearsEatBull.com. In doing so,  I had three primary goals:

    1. To give my children some investment knowledge and wisdom,
    2. To force myself to into a discipline that would keep me abreast with markets and the economy, and
    3. To stimulate discussion with others about the investment environment, the one thing I really missed about leaving the investment management business.

    Certainly, I accomplished my first two goals. The third goal, however, was elusive, probably because my writing was either too difficult to understand for the average person or not in-depth enough for professional investors.

    In any case, the time has come for me to wind down BearsEatBulls.com. This is not because I failed to achieve my third goal. The process of writing BearsEatBulls.com has

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