This post contains more articles dealing with the economy than my last few.  I am seeing alot of crosscurrents, and differing opinions, so I thought it would be important to focus some attention these issues.

Since I follow the commodity markets closely, I am very concerned by the massive rise in commodity prices.

Anyhow, have a look!

Buffett right hand man Munger suggests market is overvalued

Market valuation is always a funny thing… it will be cheap to some and expensive to others at the same time.  But, it pays to pay attention to people who’ve been around the block a few times.  Charlie Munger is one of them.

Munger thinks the market is overvalued, but like everyone else, doesn’t know when the good times will end.  However, he does suggest it will be a bad ending when it does occur.

I concur.

Munger.

Fed Chairman Powell won’t be hiking rates anytime soon

But, the market will likely do it for him.

Powell.

Covid Derangement Syndrome

This next article discusses the very real issue of Covid Derangement Syndrome.  Yes, it is real.

Yes, everyone by now knows someone who has been significantly impacted by Covid-19.  I currently have a friend in the hospital as I write this post.

However, the drastic measures undertaken by some politicians, and the continued fear that is still out there speaks to this idea of Covid Derangement Syndrome.

Yesterday, I saw someone driving alone, with a mask on.  I regularly see people walking down the street or riding their bike, alone, with a mask on.

They literally think one particle of Covid is enough to kill them.  This is crazy.

Anyhow, here is the article… Covid.

The Economy #1

In this next article, economist David Rosenberg suggests that the economy will face headwinds sooner rather than later.

I tend to agree with this assessment because of the speculative froth I’ve been seeing in the markets.  The bond market has been reacting negatively to that speculation for awhile now.  If rates on the long end push significantly higher, there will be problems.

Here are Rosenberg’s thoughts.

The Economy #2

On the flip side, Brian Wesbury believes there is no chance of a double dip recession, as most other economists and market analysts agree.  They believe there is massive pent up demand that will explode once the pandemic wanes.

However, Wesbury does warn that too much economic stimulus in the near term will have longer term consequences.  I agree.

Here is Wesbury’s latest research paper.

Economic Civil War

Biden’s economic policies tend to favor the states on the coasts, dominated by the elitists.  However, major energy producing states are tending to vote more Republican over time.

Another issue is that blue states such as Illinois, and blue cities such as Chicago and New York want an economic bailout due to their massive budget issues.  Naturally, voters in states that don’t have those issues won’t be too happy about sending their tax dollars to these regions.

Joel Kotkin discusses some of these issues here… Economic Civil War.

Hey, if you’ve enjoyed these posts this week, let me know and please share.  That will give me the incentive to keep doing them!