After the quietest September in history for U.S. stocks...
Things may about to get a little more exciting - entering the final months of 2017, that last digit doesn’t bode well, if history is any indication.
As Bloomberg reports, some of the biggest fourth-quarter declines in the Dow Jones Industrial Average have occurred in years ending in seven, the worst being in a Black-Monday plagued 1987.
Authored by Paul Craig Roberts,
Do the Wall Street Journal’s editorial page editors read their own newspaper?
The frontpage headline story for the Labor Day weekend was “Low Wage Growth Challenges Fed.” Despite an alleged 4.4% unemployment rate, which is full employment, there is no real growth in wages. The front page story pointed out correctly that an economy alleged to be expanding at full employment, but absent any wage growth or inflation, is “a puzzle that complicates Federal Reserve policy decisions.”
Two days after the nonpartisan Tax Policy Center announced that the White House’s tax reform plan would raise taxes on about 12% of taxpayers, Treasury Secretary Steven Mnuchin took to the Sunday talk shows to defend the Trump tax plan, which was unveiled Wednesday in a nine-page document.
Authored by Chris Whalen via The Institutional Risk Analyst,
“The great wheel of circulation is altogether different from the goods which are circulated by means of it. The revenue of the society consists altogether in those goods, and not in the wheel which circulates them”
Adam Smith, 1811
With VIX ending Friday at its lowest weekly close ever, lowest monthly close ever, and lowest quarterly close ever - after the quietest September stock market in history - SocGen warned last Friday that the current situation is a "dangerous volatility regime" citing the strong mean-reverting tendency of uncertainty as a big reason for investors to brace themselves for trouble ahead.