Juggling Dynamite

Howard Davidowitz, chairman at Davidowitz & Associates, and Don Rissmiller, chief economist at Strategas, examine the state of retail on Black Friday and runs down the winners and losers in the retail sector. Here is a direct video link.

By the way, my partner Cory Venable’s chart of the Canadian REIT ETF (XRE) here between 2007 and 2009, gives a sense of the price performance potential once these ‘income’ securities hit an overzealous valuation top.  While holders lost 60% of their capital in under two years, those who resisted temptation and waited to buy it after mean reversion took place, had the reward of an 11% dividend yield, compared with 4.7% yield at the price peak in 2007. (The income yield at each price point is noted in the boxes.)  The price of indiscriminate buying and holding is routinely catastrophic to savings each cycle.  Important to pay attention to valuations and cycle!

Danielle was a guest with Kerry Lutz on The Financial Survival Network, talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.

Note: After our conversation, Kerry forwarded this story in response to allegations that Sessions is racist. See: In Alabama, Jeff Sessions desegregated schools and got the death penalty for KKK murderer (updated).

Interesting perspective expressed in this clip that Reagan’s tax reforms passed in August 1981 because the government was brought together for a few sympathetic months after he had been shot in March 1981.  Stockman actually witnessed these events first hand serving as a Republican U.S. Representative from Michigan (1977–1981), and as Reagan’s Director of the Office of Management and Budget (1981–1985).  Here is a direct video link.

I outlined the profound differences between today and 1981, in terms of economic and market cycle–tax and debt levels, interest rates, demographics, growth outlook and asset valuations–in my discussion with Kerry Lutz yesterday; will post asap.