Iranian Election; Apple; Macro: Best of Kass
Jun 16, 2013 | 01:20 PM EDT
-- U.S. economic growth. Four years of easing has failed to produce much more than +2% real growth domestically. The uncertainty of a non-self-sustaining recovery will weigh on stocks if QE is tapered. -- Interest rate cliff. Tapering could result in ever higher rates. Our consumers, corporations and government are addicted to low rates. Moreover every discount dividend model depends on a cap or interest rate. Higher rates, in theory, reduce the value of future cash flows. Here is my previous column on the interest rate cliff. In other words, Jimmy, no corporation is an island! Never in history has our domestic growth trajectory been so dependent on policy, especially monetary. We are in an experiment, a big experiment. Buffett told the audience in Omaha in May that he knows not how they exit this experiment nor what the ramifications might be. There are other reasons why macro is important, but the above are some of the major reasons.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas