Submitted by Gail Tverberg via OilPrice.com,
What is ahead for 2016? Most people don’t realize how tightly the following are linked:
1. Growth in debt2. Growth in the economy3. Growth in cheap-to-extract energy supplies4. Inflation in the cost of producing commodities5. Growth in asset prices, such as the price of shares of stock and of farmland6. Growth in wages of non-elite workers7. Population growth
With Q4 earnings season drawing to a close, here is a quick recap of the key issues facing corporate CEOs and CFOs based on their conference calls as summarized by Goldman's David Kostin: 1) Company managements forecast positive US GDP growth in 2016, in contrast with investor concerns of a potential recession. However, global growth prospects appear grim, particularly within commodity-exposed nations. (2) Strong domestic consumer demand persists amid industrial weakness. (3) Several firms announced large or accelerated share repurchase programs in 2016.
The buzz surrounding the late-afternoon bounce in stocks yesterday revolved around the news that Jamie Dimon was buying 500,000 shares of JPMorgan Chase stock. As Dana Lyons notes,
By EconMatters
Apple has a lot further to go to the downside as a stock. This stock will be putting in lower highs and lower lows for years to come.
https://www.youtube.com/watch?v=rAcmJGM9XHc
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There are market crashes and then there are market crashes: by contrast to August 24, when the S&P500 melted down before our eyes in a sharp, violent plunge as something clearly broke in the link between ETF and vol models and the VIX itself did not report updates for nearly an hour for reasons that have still not been clearly explained, the recent global market crash has been far more contained, if not outright orderly.