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China Produces More Cars Than The U.S. – Global Trade

Just as the U.S. auto industry mushroomed after WW II and during the 1950s, the same is occurring in China. It’s not just Chinese branded automobiles that are being made in China, but well known foreign brands as well. As the demand for cars has skyrocketed in China over the past two decades, foreign manufacturers recognized an expanding market and started producing their own brands within the country in order to sell directly to Chinese drivers.

Foreign manufacturers have found it more profitable and feasible to manufacture cars in China in order to meet exploding demand. German, American, and Japanese automakers now populate the manufacturing lines in China.

Chinese brands...

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A Brief History Of Tax Cuts – Historical Note For nearly a hundred years, tax cuts have been a centerpiece of political strife among politicians, with both parties at times lobbying for lower tax rates. An accepted belief has been that lower taxes widen the Federal deficit and provide no economic expansion. Contrary to this belief, prior tax cuts enacted by various presidential administrations actually yielded economic growth and higher revenues for the Federal Government. During the 1920’s, tax rates were lowered from over 70% to less than 25%, resulting in an increase in tax revenue from $719 million in 1921 to over $1.1 billion in 1928. Following the dramatic tax increases during the 1930’s imposed by President Hoover and Presiden...

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For nearly a hundred years, tax cuts have been a centerpiece of political strife among politicians, with both parties at times lobbying for lower tax rates.

An accepted belief has been that lower taxes widen the Federal deficit and provide no economic expansion. Contrary to this belief, prior tax cuts enacted by various presidential administrations actually yielded economic growth and higher revenues for the Federal Government.

During the 1920’s, tax rates were lowered from over 70% to less than 25%, resulting in an increase in tax revenue from $719 million in 1921 to over $1.1 billion in 1928.

Following the dramatic tax increases during the 1930’s imposed by President Hoover and President Roosevelt, Democratic President John...

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Macro Overview

A change in sentiment was prevalent throughout the markets as new rules and regulatory reversals began to take effect. Volatility rose as markets tried to discern President Trump’s policies.

Equity markets propelled to new highs in January as optimism fueled U.S. equities, sending the Dow Jones Industrial Average to a new milestone level of 20,000. The S&P 500 Index and the Nasdaq Composite Index also reached new highs during the month.

Executive orders undertaken by the President were able to derail several rules signed into law by the Obama administration, yet fiscal policy initiatives proposed by President Trump such as tax cuts and tax reform need Congressional approval. The Congressional Review Act (CRA) will al...

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The first week of 2016 started with a big move down in equity prices as a result of geopolitical events in emerging markets and fears of slowing economies worldwide. However, these and other reasons ignor the larger trends influencing markets today.

Understanding today’s market-moves requires the study of market history and secular trends that dominate market direction. Most investors are unaware of secular bull and bear markets that control long-term direction of markets for significate periods of time.

Let’s review the last century of stock market cycles. Classifying bull markets and bear markets is necessary to understand their impact on short-term trends. I define secular bull markets as extended periods or years when the...

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Price to Free Cash Flow Investment Model Empirical Data: 1950-2009

The GeaSphere Price to Free Cash Flow (PFCF) research study is the foundation of our stock picking philosophy.

Our GeaSphere (PFCF) Dow Portfolio was vigorously back tested from the years 1950 to 2009 by exclusively using the stocks in the Dow Jones Industrial Average (DJIA) that met our proprietary free cash flow philosophy.

We invested $10,000 in two separate portfolios, where one represented the entire Dow Jones (DJIA) and the other represented only the stocks in the Dow Jones (DJIA) that met our strict GeaSphere (PFCF) criteria.

Using standard back testing methods, we purchased each portfolio on the first trading day of each year and sold the entire portfolio on the l...

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