BIBL News and Press, Inspire 100 From 12/13/20

Over the past couple of weeks, we have talked about a short-term correction potential due to selling pressure from annual mutual fund distributions. We saw that taking place this past week with the market struggling to maintain its breakout levels. With the heavily skewed "put-cal...

The blistering IPO market is but one of the myriad late-cycle manifestations of Acute Monetary Disorder. November's record $121 billion ETF inflow - boosting the y-t-d flow tsunami to a record $659 billion. SPACs and frenetic retail call option buying (one can only imagine current hed...

The Wisconsin Department of Revenue has released its Economic Outlook, dated November 22nd. Notice the drop in employment in October's numbers. It's unclear whether this outcome is a product of measurement error or representative of an actual drop in activity (that observation point i...

With the US suffering another coronavirus wave, the odds remain low that inflation will accelerate sharply in the near term. The Treasury market is certainly pricing in a firmer run of inflation expectations lately. Some corners of the economy suggest that pricing pressure is boun...

The month of compromise has delivered two so far. OPEC+ agreed on output targets for next year while the EU27 gave their backing to the 2021-27 budget and recovery fund. That just leaves Brexit and US fiscal stimulus outstanding, with a positive outcome in both cases making this a rat...

It's that time of year when Wall Street analysts start trotting out the predictions for earnings growth and stock market targets for the coming year. Unfortunately, each year these overly optimistic estimates are ground down as the year progresses. Next year will be no different a...

The private sector balance increased by over $181 billion in November, thanks to federal government fiscal support and commercial bank credit creation. Credit creation from commercial banks was a robust $92 billion. Month over month, the level of fiscal support from the monetary c...

Sentiment right now is as bullish as it can be, indicating a correction in the foreseeable future. Valuation levels are also at extreme levels, indicating that investments may yield next to nothing over the next few years (or the next decade). Nevertheless, sentiment can drive the...

I've written on multiple occasions about how deficit spending ultimately hampers GDP growth by crowding out private investment. It can also weigh on GDP growth when inflows of foreign dollars go toward funding the fiscal deficit instead of buying US goods or being invested in US asset...

Today’s market selloff was an anomaly amid the bullish attitudes that have prevailed despite trouble in the real economy. The yield curve continued to steepen even on a day that saw equities selling off, which may suggest a breakdown in that correlation. People looking thro...