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BofA just published a chart about the concentration of companies in historic investment manias beginning with the railroad mania of the late 19th century. Usually, when the bubble theme reaches a heavy concentration (around 40% of the stock market capitalization) a collapse follows. As I have argued in the past, the rules of the game are changing…
My friend, the highly respected, “pure” and dogmatic Austrian Economics protagonist, Frank Shostak recently published for the Mises Institute an article with the title, Is Deflation Bad for the Economy? The economist Joseph Schumpeter had postulated that, “The capitalist engine is first and last an engine of mass production which unavoidably also…
Against my expectations, the major stock indices in the US broke out on the upside and made new highs over the last ten days. However, from a technical point of view the new highs are not particularly impressive. While market breath improved the number of stocks that trade above their 200-day moving average is disappointing. Furthermore, if we…
Last month, I also postulated that I could not be enthusiastically bullish about government bonds because compared to consumer price inflation, their yield was not particularly high. However, I noted that as a believer that we would shortly experience massive asset price deflation in just about everything (such as we just saw in cryptocurrencies,…
The title of last month’s report was Has a Great Rotation begun? In the context of this proposition several charts caught my attention recently. Given by how much an entire generation of young people gullibly believed in the merits of cryptocurrencies, I found their recent collapse in prices from the October 6, 2025 high to be rather remarkable. …
According to Global Markets Investors, “US stocks have NEVER been this expensive: The S&P 500 price-to-sales ratio is up to 3.47x, an all-time high. This means investors are paying $3.47 for every $1 of revenue generated by S&P 500 companies. The ratio is now +53% above the 2000 Dot-Com Bubble peak of 2.27x. It has also surpassed the 2021 peak of…
According to Frank Shostak who wrote for Mises Wire an essay entitled, Financial Bubbles: How they Make Us Poorer, “we rightly associate a bubble activity with an expansionary monetary policy of the central bank. This type of policy gives rise to various undertakings that, in the absence of the expansionary monetary policy, would not have emerged.…
The Illusion of Progress by Anthony Deden is the best economic essay that I have read in recent times. Discussing the early phase of the capitalistic system during the Industrial Revolution, Deden writes that, “Behind these visible achievements lay an invisible order. Enterprise rested on saving; saving depended on restraint. Honest money was…
According to a recent article by the Guardian (www.theguardian.com), 75% of Americans report soaring prices as Trump claims inflation ‘over.’ The article reads: “Nine months after Donald Trump took office, promising to reduce prices on ‘day one’, a clear majority of Americans say their monthly costs have risen by between $100 and $749, according to…
My philosopher friend, marcel.a.emmenegger@gmail.com recently made some interesting comments about The Paradox of Corporate Morality in an essay entitled "Optics as Ethics." He writes: Modern capitalism operates with a peculiar moral compass. Systemic harm is absorbed and normalized. Personal scandal is punished swiftly and without mercy. Nestlé…
Marc Faber