The 'Goldilocks' Warning

The problem of suggesting that we have once again evolved into a "Goldilocks economy" is that such an environment of slower growth is not conducive to supporting corporate profit growth at a level to justify high valuations. Such a backdrop becomes particularly problematic when the Federal Reserve begins to raise interest rates which removes one of the fundamental underpinnings of an overvalued market which was low interest rates. Ultimately, higher interest rates, particulalry in an economy with a deteriorating economic backdrop, becomes the pin that "pops the bubble."  It is true that the bears didn't eat Goldilocks at the end of the story...but then again, there never was a sequel either.

Zuckerberg To Donate 99% Of His Facebook Shares To "Advance Human Potential"

"We will give 99% of our Facebook shares — currently about $45 billion — during our lives to advance this mission. We know this is a small contribution compared to all the resources and talents of those already working on these issues. But we want to do what we can, working alongside many others."

"The Most Extreme Point Of Stock Market Overvaluation In History"

The atmosphere is getting thin up here, and every ounce counts triple when you're climbing in rarefied air. While near-term market dynamics are more likely to be impacted by Friday’s employment report than any other factor, our broad view remains that stocks are in the late-stage top formation of the second most extreme episode of equity market overvaluation in U.S. history, second only to the 2000 peak, and already beyond the 1929, 1937, 1972, and 2007 episodes, not to mention lesser extremes across history.

Today's WTF Stock Chart Du Jour

Meet Acorn International - an integrated multi-platform marketing company - which closed down 23% yesterday (after falliong 45% intraday) on 23x the average volume. Following a conference call this morning, in which the CEO cited some 'volatility' in the ADSs and discussed strong Singles Day sales, the stock is now up over 700%.

The Truth About GDP

If rising prices are good for the economy, how come everyone was so unhappy in Germany's Weimar Republic in 1923, or in Zimbabwe fifteen years ago? Surely, as inflation accelerates the happiness level should rise...

Ironic Headline Of The Day: Billionaire Buffett To Stump For Hillary's "Everyday Americans" Campaign

Warren Buffett - billionaire investor, opposer of Citizens United but major donor to super-PACs, previous fan of Bernie Sanders, and vehement supporter of the 'fairness doctrine' on taxes for everyone but himself - will be joining 'campaigner for everyday Americans' Hillary Clinton as she stumps in Omaha this month. We are sure average joes and janes across America will feel relieved that two such 'feet on the ground, down to earth' people are representing their needs and hearing their fears.

Operation Gladio Reborn: The Paris Attacks Have Unleashed A New Wave Of Emergency Laws

"... Gladio, amongst others, is just a perfect example of how governments used oppression against their own citizens to shape the mindset of the public to unify them towards a common goal and objective, which in our case is: counter-terrorism. The problem, however, is that by giving this support, the public indirectly relinquishes many freedoms and liberties."

Can We Blame Hedge Funds For Low Oil Prices?

When oil prices were spiking in 2008 and some commentators were predicting prices of $200 a barrel, many pundits and politicians turned to blame speculators and hedge funds for pushing prices upwards. That period of high prices passed and speculators avoided any tough new regulations in part due to mix empirical evidence surrounding the causes of price volatility. Now though, the opposite case is being made; hedge funds shorting oil may be behind recent volatility and the current low price of oil.

Rahm Emanuel Fires Chicago Police Chief

Chicago Mayor Rahm Emanuel announced the resignation of Police Superintendent Garry McCarthy, amid growing furor over the administration’s handling of the shooting death of a black teenager by a white officer last year. “Now is the time for fresh ideas and new leadership” the mayor said.

Atlanta Fed Slashes Q4 GDP Forecast From 2.3% To Just 1.4% In Under One Week

Moments ago the GDPNow website announced that the latest model forecast for real GDP growth in the fourth quarter of 2015 has now tumbled to a paltry 1.4 percent on December 1, down from 1.8 percent on November 25. "The decline occurred this morning after the Manufacturing ISM Report On Business from the Institute of Supply Management and the construction spending release from the U.S. Census Bureau."

The US Stock Market – An Accident Waiting To Happen

Long term risk has increased quite a bit, no matter which data points one happens to consider. Whether one looks at valuations, market internals, leverage or positioning, there are now more warning signs than ever. With the support provided by strong money supply growth declining as well, it becomes ever more likely that these potential dangers will actually materialize. It is an accident waiting to happen.

Treasury Bond Yields Are Collapsing As Dec Rate Hike-Odds Slide

With December rate-hike odds sliding the most since the last FOMC meeting (down from 75% to 70%), following abysmal data this morning, it appears investors are reaching for the safety of Treasuries as either a fed policy error is about to be unleashed and/or growth is signficantly weaker than all the talking heads proclaim. With traders the most net short in years, this rapid plunge in yields could quickly accelerate.