Which is More Impactful to the US: Crude Oil or China Trade? Can Someone Tell Currency Traders?

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Talk of a trade war with China has recently dominated the discussion in financial markets, overshadowing the other major story playing out in the US economy—normalization of the energy markets. I thought I would answer the question of whether trade with China or oil was a bigger economic issue. Currently the US consumes about 20.4M […]

Mid-Quarter Update: The Monetary Policy Pitchfork

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The big three central banks (Federal Reserve, European Central Bank and the Bank of Japan) met this week to review their monetary stance. In this mid-quarter update, we share our analysis, The Monetary Policy Pitchfork. Summary: After a decade of emergency monetary policy, the major central banks are starting to normalize policy. The Federal Reserve […]

“Bubble-Like Stock Valuations Miss $3.4 Trillion in Hidden Assets” – or Why Intangibles Matter

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This week, in Bubble-Like Stock Valuations Miss $3.4 Trillion in Hidden Assets, Bloomberg detailed how traditional accounting can make a company’s fundamentals “look a lot worse than they are.” In the article, New York University’s Professor Baruch Lev weighs in. “You get numbers which are highly inflated for some companies and are understated for other […]

Geopolitics Update: Trade War, Tariffs & the Coming Tech Implosion

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As the Trump administration’s on-again, off-again trade war with China continues to create uncertainty for investors, we sat down with geopolitical strategist Peter Zeihan to learn more about the tariff program and what it could mean for the US economy. Similarly, we discussed the changing outlook for Silicon Valley technology firms — especially Tesla, Facebook, Twitter […]

Customer Franchise, the Most Valuable Asset: Here is How to Value It

“Subscribers Are the New, New Thing in Business” declared The Economist (April 11, 2018). The magazine says that “Subscription models are seen by many investors and executives as the holy grail, because they promise a recurring stream of revenue…. The attractions of subscription businesses are obvious. Firms can predict the future better and build deeper relationships with […]

The Unbearable Lightness of Earnings

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Baruch Lev is the Philip Bardes Professor of Accounting and Finance at the Stern School of Business, NYU. This article first appeared at the Lev End Of Accounting Blog and is shared here with his permission. Today’s Wall Street Journal published an article that caught my attention: “Next Up: The Forgotten Earnings Season.” The article opens: “Only once before have […]