Tellurian Inc.: A Disruptive Energy Transition Speculation

LNG will power the global decarbonization transition. Tellurian is a potential game changer. Tellurian will export low-cost US LNG to high-priced international markets. Is Charif Souki energy’s Elon Musk?   Tellurian Inc. (NASDAQ: TELL) could be a clean energy disruptor much like its predecessor Cheniere Energy, Inc. (NYSE: LNG). Charif Souki is the Executive Chairman of […]

The Fed’s Transitory Inflation Argument Debunked.

The August 2020 Federal Reserve Jackson Hole meeting produced a generational shift in monetary policy in which the central bank abandoned its staunch 40 year inflation-fighting posture. Income Growth Advisors, LLC (IGA) has been warning of higher interest rates, since then, and 10-year US Treasury yields have been rising, except during the recent month’s Delta […]

The Greater Fool Theory and Jenga Mirror Today’s Market

Current market valuations are extreme, but overvaluations can persist for long periods before a market peaks. Today, several negative factors are increasingly weighing on the market, while the benefit of the economic recovery is increasingly being fully discounted into the market. At some point, like the game of Jenga, the market’s impressive bull market will […]

Major Warning Signs Point to Market Top

The US stock market is forming a major market top. Valuation measures, price charts, decelerating earnings in leading tech stocks, broad-based margin deterioration, inflation, rising interest rates, and rising taxes are increasingly weighing on equity valuations. These growing negative factors are balanced against the massive liquidity which has pushed valuations to historically high levels. The […]

Delta Variant Pauses Reflation Cycle

COVID-19 is still the leading global market factor Rising interest rates pause with Delta Variant Great Rotation could drive 800% outperformance Inflation could torpedo benign interest rates Natural Gas is an energy leader The COVID-19 pandemic and its media coverage have driven the world’s markets since January 2020. The pandemic has been the primary fundamental […]

Inflation Drives the “Great Rotation”

Strong economic growth and inflation are persistently driving the “great rotation” from growth stocks to cyclical stocks. Were it not for the historically low Treasury yields, which make stocks attractive by comparison, the S&P 500 stock index’s overvaluation would be problematic. As vaccination levels rise toward herd immunity, economic activity is rapidly recovering. Vaccinations in […]

Rising Rates Drive Inflationary Market

Interest rates are rising rapidly, ending a 40-year bond bull market and shifting the economy from deflationary to inflationary. Rising interest rates are replacing COVID-19 as the main factor driving global economies and markets in 2021. Our September forecast for rising interest rates in our Two Generational Trends Reverse letter is proving to be timely […]

Equity Bull Market Loses Key Driver – Low Interest Rates

Heading into the second quarter, the US economy is rapidly strengthening with COVID-19 cases plummeting and vaccinations driving the US toward herd immunity. Further economic strength will come from the $1.9 trillion “CARES Act” – Corona Virus Aid, Relief, and Economic Security Act – and an anticipated $2 trillion infrastructure bill that will provide massive […]

The Final Stages of a Historic Market Bubble

Is the Reddit revolution a sign of the top? Buffett and Shiller indicators flash extreme caution. Do social media companies foment violent extremism? Why the tech bubble should burst. International equities and commodities make sense. The current extreme speculative stock behavior combined with the historically high valuations of the S&P 500, FAANG, and OTC stocks, […]

Preparing for a Double Barreled Bear Market

The pandemic will end, the economy will recover, and interest rates will rise. The bond market’s 40-year bull run is over. Interest rates are rising, and bonds should be sold. The stock market bubble is poised to burst. The economic recovery will drive commodities and cyclical stocks higher. The pandemic will end, the economy will […]