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In Recent Years The Number of Unicorns Has Simply Exploded Artificially low interest rates have caused a bubble in the sector. But how sustainable it is? Only time will tell.

Why Are Dividends and Buybacks Hitting Record Highs? Corporate stock buybacks and dividends are booming, thanks to the tax cuts and low interest rates.Unfortunately, artificially low interest rates are associated with unnecessary debt and a rise of corporate debt-to-GDP since the Great Recession.

Yield Curve vs. Real Fed Funds Rate In modern history, every recession was preceded by an inverted yield curve and high real interest rates. When an inverted yield curve occurs, short-term interest rates exceed long-term rates. It suggests that the long-term economic outlook is poor and that the yields offered by long-term fixed income securities will…

Howard Marks on market’s record highs, potential risks Howard Marks speaks about market’s record highs and doesn’t see a lot of euphoria. However, we are in a Fed-induced bubble due to ultra low rates.

Why Is the Dollar So Strong? There are several reasons for this: – Interest rates differential – Strong American economy and no immediate recession– American geopolitical dominance– Market shadow over Donald Trump’s re-election Image: The Daily Shot

Is the Fed Funds Rate Lower Today than in Previous Business Cycles? Yes! and unfortunately, artificially low interest rates are associated with unnecessary debt, lower productivity and zombie firms in this late-cycle expansion. Image: Blackrock

Why Potential GDP Has Been Cut in Half Since the 1950’s? The main reason is a lower productivity than previous business cycles, due to: – lower population growth – the service sector is growing faster than the industry sector – lower quality jobs in the service sector have a lower productivity than in the industrial…

Does Surging Oil Prices Cause Recession? Historically, a rise oil prices can cause recession because high inflation tends to lead to higher interest rates. But nowadays, oil shale production in the US limits the rise in oil prices and makes it possible to avoid a future crisis like the one in 2008.

The Long-Term Impact of Compounded Returns The amount earned from compounding grows exponentially over time. Successful investing is all about patience and discipline. So, a lack of patience and investment discipline may impact long-term returns. And keep in mind that the power compounding only works if you do not lose capital during the investment horizon. What about compound…

Why U.S. Productivity Is Lower Than Previous Business Cycles? The real yield is the most important measure of financial tightness. But as the real yield is near zero, artificially low interest rates are then associated with unnecessary debt, zombie firms and lower productivity than previous business cycles. Zombie firms cannot invest, innovate and increase productivity. …