Correlation Economics Backup

If I don't have any ideas anymore what to buy, I use the  stock screener . KBC Ancora, which holds KBC group shares, is valued at a discount when you compare the value of KBC group shares it holds to the value of KBC group itself. I believe earnings growth is accelerating and dividends will go up. KBC group also will buy back 220 million euro in shares towards the end of the year. What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change. 1) Market Cap: do not choose small companies as they are mostly fraudulent or don't have sustainable earnings. Don't choose big companies because these are not volatile enough to get fast profits from. I'd filter between 200 million and 4 billion. 2) P/E ratio: choose the companies with the lowest P/E ratio, these companies are dirt cheap while still having earnings. Cheap is below P/E of 5. But do not choose below P/E of 2 because those are mostly companies that are going bankrupt or hav...

If I don't have any ideas anymore what to buy, I use the  stock screener . What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change. 1) Market Cap: do not choose small companies as they are mostly fraudulent or don't have sustainable earnings. Don't choose big companies because these are not volatile enough to get fast profits from. I'd filter between 200 million and 4 billion. 2) P/E ratio: choose the companies with the lowest P/E ratio, these companies are dirt cheap while still having earnings. Cheap is below P/E of 5. But do not choose below P/E of 2 because those are mostly companies that are going bankrupt or have bad growth. 3) Dividend yield: always choose companies that have dividends, because these companies have real earnings and can prove they have sustainable earnings to reward investors. The higher the better of course, but don't push it above 7% as those companies probably don't have the money to pa...

The economy has seen a significant transformation since September 29th, 2017, when the debt ceiling was raised and U.S. debt went up by $800 billion (see chart below from Wolfstreet ). From that day on, everything changed. Read the analysis here .

After a small hiatus in 2017, the gold repatriation continued in January 2018.

In a previous article I mentioned that the U.S. deficit was going to spiral out of control and that inflationary pressures will emerge, putting pressure on the U.S. dollar. Well, it just got worse with the news that Trump is going to impose import tariffs on steel (25%) and aluminum (10%). I will make the case that this will only increase U.S. deficits and be detrimental to GDP growth. When import tariffs are imposed, basic economics tells us that in all cases, the price of the good will increase. Foreigners will sell less of the good to the U.S and domestic production of the good will increase. Go here to read the analysis .

I'm sorry but I need to highlight this event. China, you disappoint me.

Uranium seems to be the latest thing in investment land. I can agree with that, but it's much too soon. I would wait 2 years.