Financial Sense Blog

Riders on the Storm

May 2 – In my four decades in the business, I have only witnessed one soft landing once a fed rate raising cycle began, which was 1994. They have a very poor track record of predicting inflation and engineering a soft landing in the economy...

Why the World's Energy Shock Will Continue

Apr 13 – Much of our oil comes from just 25 oil fields discovered over 75 years ago. The worlds’ 507 giant oil fields make up about 1% of all oil fields, but they produce 60% of the current oil supply. The majority of these fields are over 50 years old...

Macro Headwinds Abound

Mar 4 – New home sales are down double-digits from last year’s level as a 30-year fixed rate mortgages have surged from under 3% to nearly 5%. Unless mortgage rates move materially lower soon, the slowdown in housing is...

As Volatility Picks Up, Here's Where Investors Are Putting Their Money

Jan 21 – Current money flows are reflecting a reactionary positioning to higher inflation and higher interest rates with dramatic moves seen across the ETF space. Also, as shown below, money is coming out of very large, passive ETFs and going into...

Most Recent Data Shows a Large Withdrawal in Market Liquidity Underway

Jan 4 – While economic growth is likely to remain positive in 2022, we are seeing a large withdrawal in market liquidity coming from several sources: Fed QE is ending, REPO facility is exploding to nearly $2T, and the US Treasury will be...

Felix Zulauf's Macro Outlook for 2022

Dec 27 – I do believe that we are looking at a very important medium-term peak. But I do not believe that is the end of this current market cycle. I think the market cycle will most likely stretch into 2024. But what we are facing now is...

Slowing US and Global Growth; Credit Risks in Focus

Nov 16 – US and global growth is slowing after a strong initial recovery. We have the fiscal cliff ahead of us as well as the Fed's planned tapering of its QE purchases. Growth will likely slow well into the first half of 2022 and with it some moderation...

The End of Money

Oct 29 – In the not too distant future, an American president will have no other choice but to devalue the currency as a means of debt forbearance. He or she will have no choice. Interest payments will be too large, and taxes will not be sufficient to pay interest...

Clash of the Tech Titans and Revenge of the ‘Old Economy’

Oct 1 – The dramatic shift away from “dirty energy” to “green energy” has seen large investor capital shift away from resource companies that dominated in the early 2000s towards the FAANG stocks over the last decade. This shift in capital coupled with falling commodity prices

Jim Paulsen on Inflation Threat, US Macro Outlook

Sep 27 – Recent economic data releases continue to fuel fears of a slowdown in economic growth heading into 2022, but don't get too pessimistic on the outlook for the United States, says Leuthhold's Chief Investment Strategist Jim Paulsen...

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