What Happens to Cities Next?
Since the industrial revolution changed the productive output per worker, humanity has been compelled to increasingly utilize the efficiency and shared resources of cities. There have been some social trends against this wave – like the suburban migration of the late 20th century – but the dominant...
Earnings Models: Has the Rally Outpaced Reality?
The economy and the markets seem disconnected
We have repeatedly asserted that, in the short-term, there is limited correlation between the current economy and the stock market, because economic data is generated weeks (or even months) after real world events occurred and the stock market looks forward...
Compounded Trends
Pop quiz: How has the US stock market done over the past year?
Answer: It’s flat. Given the fact that we are in the steepest economic decline since World War II, the strength of the stock market has been astonishing.
To be more specific, if you were to compare the S&P 500 price level at May 20,...