ProfitScore Update – April 2024
To the clients and friends of ProfitScore: The period following the 2008 financial crisis was marked by historically low interest rates, a trend that appears to be reversing in the current economic landscape, suggesting that high interest rates may persist over an extended period. This…
ProfitScore Update – June 2023
To the clients and friends of ProfitScore: A recent study from the US central bank has set off alarms in the financial sector, signaling a record increase in American businesses under financial distress and the possibility of intensified ramifications from the Federal Reserve’s war on…
How The Fed Put Has Affected Risk Assets
The US Federal Reserve (Fed) asset purchases significantly affect the value of risk assets (equity, commodity, real estate, etc.). We recently completed an extensive research project to learn more about this effect and how we might use this information to better trade the financial markets….
Demographic Obstacles to Increasing Yields
The ground is littered with dead bodies of investors/traders who have bet on rising US rates/yields. Is this time different? Why is this trade so difficult? It is my very humble opinion that when the history books are written about this time in financial history,…
World War C: Will Rising U.S. Deficits Steepen The Yield Curve?
Estimated Deficit Spending for 2021 Modern Monetary Theory (MMT) – Version 1.0 The U.S. Dollar Stays Strong Drowning Out The Noise What Opening Up May Look Like The economic toll, as measured by deficit spending, is going to set new records across most modern economies. Even…
World War C: Illiquidity is CRUSHING Corporate Debt Markets
Cumulatively the markets are at or near record highs in illiquidity. What makes this collapse so devastating is the breadth of illiquidity across most sectors of the market. The Volcker rules that were passed in 2009 to protect banks had unintended consequences. Banks stopped making markets in…