Tag Archives: Zero Hedge

Goldman Goes Gloomy … Forecasts Market Decline

Goldman Sachs recently put out a gloomy report on the stock market. Hat Tip Zero Hedge

Goldman Sachs One Year S&P 500 Target

In a recent research report, the big financial firm AKA Vampire Squid put out multiple gloomy forecasts.Goldman Sachs

  • Year end 2015 target of 2100 on S&P 500
  • Full year target of 2125 on S&P 500

In closing their most dire longer term forecast was for a total annualized return for the S&P 500 for the next 10 years to be 5%. WOW !!

We really like getting this information down in our digital diary. Time will tell !

Have a great Day!

John A. Kvale CFA, CFPJK Street Cents Logo

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

April Fools Capital Market dates to take note….

In 2010 April 26, 2011 April 29, and in 2012 April 2 marked a very special day for each respective year.

Care to guess what it was?

Ahhh, you got it…these days marked the capital markets high in two cases for the year, and very near for another…thats right, for the year.

No wet Capital market blankets here…..but

We are optimists at our heart and we generally look at the glass half full, unless the glass has a flaw or two. While certainly our glass is not shattering and spewing water, it does have some hairline fractures.

This from our friends at Zero Hedge speaking of the last time markets where at this level:

  • Dow Jones Industrial Average: Then 14164.5; Now 14164.5
  • Regular Gas Price: Then $2.75; Now $3.73
  • GDP Growth: Then +2.5%; Now +1.6%
  • Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
  • Americans On Food Stamps: Then 26.9 million; Now 47.69 million
  • Size of Fed’s Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
  • US Debt as a Percentage of GDP: Then ~38%; Now 74.2%
  • US Deficit : Then $97 billion; Now $975.6 billion
  • Total US Debt Outstanding: Then $9.008 trillion; Now $16.43 trillion
  • US Household Debt: Then $13.5 trillion; Now 12.87 trillion
  • Labor Force participation Rate: Then 65.8%; Now 63.6%
  • Consumer Confidence: Then 99.5; Now 69.6
  • S&P Rating of the US: Then AAA; Now AA+

Discipline Trumps Hope

Just as a snowball can grow as it goes down a hill, capital markets can melt up and gather steam too. We are not looking a gift horse in the mouth, we only wish there were more proof that we deserve to be where we are in the capital markets. As a result, we have and will continue to stick to our discipline and re-allocate (sell high, buy low) as necessary.

participants are making bets…we hope they are correct…but safety rules

If the bets are correct and the economic situation accelerates, we will not be left behind, nor will we have any regrets. If the bets are wrong, there will be a day of reckoning, which we will be prepared for …even if it does not come!April Fools

Have a Great Day!

JK

214-706-4300
http://www.jkfinancialinc.com
8222 Douglas Ave # 590
Dallas, TX 75225

Where did everyone go ? We suspect….

On Monday, August 13, 2012 the NYSE experienced the lowest non-holiday trading volume in almost a decade (thanks Zero Hedge.)  Our favorite fear indicator the VIX (volatility index) fell to an almost 5 year low as well.

Why is this happening?

While many, including ourselves are on vacation (but happily remained tethered), and the month of August is normally a month of The Hampton’s refuge by Wall Street types, these events transpire annually and are not unusual for comparison purposes, as such this does not explain all for us. Our belief is that our world has become, at least for the moment, so consumed by our European counterparts, that we have slowed dramatically since many across our friendly pond take the month of August as Holiday.

Of course no one knows for certain, and anyone can run with a thesis, we like ours the best.

Source: Zero Hedge

Have a Great Day!

JK

214-706-4300

http://www.jkfinancialinc.com

8222 Douglas Ave # 590

Dallas, TX 75225