Why stocks could be in trouble

By Geert De Lombaerde Posted on August 19, 2009 at 9:53 am

David Rosenberg takes issue with the widely accepted argument that equities are poised to soon resume their climb because so many investors haven’t yet committed cash.

Price-to-earnings multiples at five-year highs suggest that valuations are hardly compelling; insider selling and the fact that there has been so much short-covering suggest that the liquidity story is less than meets the eye and the ‘cash mountain on the sidelines’ is being used to pay down debt, not being deployed for risky asset accumulation.

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Tags: asset management, David Rosenberg, debt, Gluskin Sheff + Associates Inc., household debt, investment, stock valuation  

Piling on the plastic

By Geert De Lombaerde Posted on June 8, 2009 at 8:07 am

Tennesseans posted the third-fastest growth rate in credit card balances during the first quarter, says TransUnion.

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Tags: consumer spending, credit, credit cards, economic indicators, household debt, state rankings  

I have a guess

By Kleinheider Posted on December 12, 2008 at 10:32 am

A debate rages over the reasons for Americans’ shrinking household debt:

Economists say consumers appear to be curbing their spending and displaying a healthy prudence about taking on new debt — something financial planners have been admonishing Americans to do for decades.

What economists don’t know is whether people are bringing down their debt voluntarily or whether it’s being imposed on them through foreclosures or the denial of credit.

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Tags: credit, debt, foreclosures, household debt