General

“That is going to be a huge challenge, to which I don’t have a great answer.” – Janet Yellen, referring this week to risks from the Shadow Banking System Fireworks in our future? As perceptive EVA readers realize, today… Read More

“This environment is one that naturally encourages investors to use borrowed money to increase their exposure to risk…they will ‘ride the market’ until there is an unambiguous signal of a ‘turn’.’” – Mohamed El-Erian, Pimco’s former CEO Come on, Dave—pull it together!… Read More

“In their efforts to promote growth and jobs, central banks are trading the possibility of immediate economic gains for a growing risk of financial instability later.” – Mohamed El-Erian, former Pimco CEO POINTS TO PONDER 1, Although the US bond market… Read More

“We learn from history that we do not learn from history.” – Georg Wilhelm Friedrich Hegel (courtesy of John Hussman from his June 14, 2014 Weekly Market Comment) The next 20%? It’s not often when my colleague, Anatole Kaletsky,… Read More

“I don’t expect the consensus to be right, I’m just surprised by how wrong it has been.” – Fixed-income specialist Jim Bianco, referring to this year’s unexpected bond rally POINTS TO PONDER 1. While most economists have dismissed the US economy’s contraction in the… Read More

“You can check out any time you like, but you can never leave.” -The Eagles, from their classic song, “Hotel California” The Immaculate correction. Maybe it really is that painless. Perhaps it is possible that US stocks can go through a series of rolling,… Read More

“Knowledge is power only if man knows what facts not to bother about.” -Robert Lynd, sociologist 1. For many years, this newsletter has urged its readers to ignore inflation worries. Lately, though, we have begun to see some indications that consumer prices may be heating up. One… Read More

“The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety), by menacing it with an endless series of hobgoblins, all of them imaginary.” -H.L. Mencken If it’s May, it must be Mauldin. Read More

“It’s in human nature to go to excess.” -Warren Buffett POINTS TO PONDER 1.  One of the more heartening aspects of the US economy’s otherwise lackluster recovery is the solid performance by the private sector.  On the flip side, a surge in medical expenditures, due to the previously uninsured… Read More

“The Greek economy is not in recession.  Nor is it recovering.  It has collapsed.”  -Wolfgang Munchau of The Financial Times Much to be humble about…  When you write a financial newsletter, it’s easy to fall into a dangerous trap. If you’re not careful, your readers can start to… Read More