Increasing public sector debt can be misleading because it can still rise during deflation. Private sector debt is where the real focus should be and private sector debt, it is true, has also expanded this year as corporates have sought to shore up balance sheets and extend debt maturities in an effort to survive the … Continue reading Debt deflation?
The U.S. has low inflation combined with monetary and fiscal stimulus which has led to a bubble in stocks. This occurred in December of 2017, followed by a near 20% decline just two months later. We saw it again in February of this year. With overly confident investors, the risk of a decline is extreme..As … Continue reading Market Highs and Herding