Commentary

It's only fitting that I write something today on Europe's multiples since I wrote yesterday on P/E multiples in the US. What prompted this were two different articles.

After I released my daily commentary a few weeks ago about S&P500 earnings, wages and multiple expansion, there has been a lot of talk about multiple expansion in the media. I think this talk is warranted because this is the crux of the…

The US employment situation summary for February showed an improving labor market with 236,000 jobs created and unemployment down to 7.7%. These numbers are indicative of an improving labor market and reflect the likelihood that the US will…

More and more the economic data coming out of the US seems to support continued recovery. The housing data certainly does. Consumer credit is increasing. And the Fed Flow of Funds data shows household balance sheets significantly repaired.…

A lot is being made of the new high that was recorded by the Dow Jones Industrial Average yesterday. However, in the context of still weak income growth and lacklustre economic growth, the new Dow highs are not as widely celebrated as the…

In mid-January I had said I expected a recession in Q2 as a result of austerity and a government shutdown in the US. Recently, however, I have moved away from that position as a baseline, largely because of the rebound in housing and the…

Europe is in recession right now, but the US is in a weak but fairly long-lived economic recovery. The difference in economic fortunes owes entirely to differing policy responses in both regions. In Europe, the economic paradigm has…

Today I thought I would try a little experiment by beginning to write a daily commentary. I have been thinking about doing this for a while and decided I needed to give it a go here because I don't have an in-depth article I am working on.…