Former Fed Chair Alan Greenspan discerns asset bubbles in the American stock and bond markets in early-2018.

Jonah Whanau

2018-01-21 07:25:00 Sun ET

As he refrains from using the memorable phrase *irrational exuberance* to assess bullish investor sentiments, former Fed chairman Alan Greenspan discerns asset bubbles in the American stock and bond markets in early-2018. Despite the recent healthy fundamental recalibration, Greenspan warn of high U.S. stock indices from Dow and S&P 500 to NASDAQ and Fortune 500. Also, Greenspan points out that the current government bond yields hover not far from historically low thresholds. The latter may transform into potential U.S. bond yield curve inversion, which often signals the early dawn of an economic recession. This inversion correctly predicts U.S. economic downturns in all decades after the 1960s. As the Federal Reserve gradually normalizes and tightens its core monetary policy, interest rates continue to raise the relative likelihood of bond yield curve inversion. Greenspan shares his ingenious insight that higher long-term government bond yields may determine the extent and duration of bullish investor sentiments during the current interest rate hike. Whether the Trump team addresses the fiscal gap with $2 trillion government expenditures and $1.5 trillion tax cuts depends on the future U.S. real GDP growth trajectory. The Trump administration expects 3%-3.5% real GDP economic growth for this self-finance to trickle down to the typical American. Greenspan's prescient comments warn of the current fiscal shortfall that may fuel U.S. debt escalation as a proportion of total real GDP.


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

A brief biography of Andy Yeh

Andy Yeh Alpha

2020-11-22 11:30:00 Sunday ET

A brief biography of Andy Yeh

A brief biography of Andy Yeh Andy Yeh is responsible for ensuring maximum sustainable member growth within the Andy Yeh Alpha (AYA) fintech network pla

+See More

Amazon CEO Jeff Bezos admits the fact that antitrust scrutiny remains a primary imminent threat to his e-commerce business empire.

John Fourier

2019-04-17 11:34:00 Wednesday ET

Amazon CEO Jeff Bezos admits the fact that antitrust scrutiny remains a primary imminent threat to his e-commerce business empire.

Amazon CEO Jeff Bezos admits the fact that antitrust scrutiny remains a primary imminent threat to his e-commerce business empire. In his annual letter to A

+See More

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha

2019-02-28 20:44:00 Thursday ET

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

AYA Analytica finbuzz podcast channel on YouTube February 2019 In this podcast, we discuss several topical issues as of February 2019: (1) our proprieta

+See More

The Sino-American trade war may slash global GDP by $600 billion.

Monica McNeil

2019-06-15 10:28:00 Saturday ET

The Sino-American trade war may slash global GDP by $600 billion.

The Sino-American trade war may slash global GDP by $600 billion. If the Trump administration imposes tariffs on all the Chinese imports and China retaliate

+See More

Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks.

James Campbell

2019-02-09 08:33:00 Saturday ET

Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks.

Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks. In the Christmas 2018 festive season, MacBoo

+See More

Fed Chair Janet Yellen says the current high stock market valuation does not mean overvaluation.

Jonah Whanau

2017-12-11 08:42:00 Monday ET

 Fed Chair Janet Yellen says the current high stock market valuation does not mean overvaluation.

Fed Chair Janet Yellen says the current high stock market valuation does not mean overvaluation. A stock market quick fire sale would pose minimal risk to t

+See More