FXstreet
Senior Member

A lot of readers asked why I didn't research Starbucks before recommending a new client sell it. It's a fair question that merits a thoughtful reply.



The stock's price-to-earnings multiple is 19 which is comparable to that of the S&P 500. A company without a clear growth plan trading at a market multiple is not a compelling investment. To be compelling, the stock would have to be a lot cheaper, or the CEO has put forth a credible plan

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The powerful gains last Wednesday were encouraging. Does this mean that the worst of the selling is over and that buyers can safely step back into the stock market? That is the view of some in the financial media, but is it consistent with the technical and sentiment readings?

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Bitcoin maximalists never give up. Bitcoin’s price has crashed from over $19,000 a year ago to under $4,000 today, and there are no signs that the price is going to rise again any time soon. But maximalists don’t care. They are in this for the long haul. Their belief? Eventually, Bitcoin will replace all government-issued money. So all they have to do is HODL on to large amounts of the future world currency, and they will become the next generation of fantastically rich elites. Or so they think.

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What good will your 2019 resolutions be if you don’t know what’s coming at you next year no matter what? People in my line of work are fascinated by predictions...but as Yogi Berra once said: “Prediction is very hard, particularly when it’s about the future.”



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The biggest problem for the global economy in 2019 will be massive business failures. Perhaps bank failures, too.



On the demand side, the end of free money will make it difficult for consumers to take on more debt. On the supply side, it could push low-profit business off the cliff.



Simply put, the end of free money is setting the global economy into a vicious cycle of slower growth.

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