Their money supply’s shrinking and yield curves have inverted. This confluence of events always precedes slumps; can this time be different? In “Dude, Where’s My Recession?” (The New York Times, 14 July) Paul Krugman noted: “almost a year has passed since the U.S. Bureau of Economic Analysis, which estimates gross domestic product, announced that real GDP had declined over … [Read more...] about Are Australia and the US heading for severe recessions?
Archives for July 2023
The Myth of Small-Cap Outperformance
“Investing” in Aussie small-caps is like gambling: the longer you play and the bigger your bet, the more you’ll underperform the house. “Small-cap stocks tend to outperform big-caps,” asserts Investopedia (“Understanding Small-Cap and Big-Cap Stocks,” 4 August 2022), “ ... because they are able to grow more rapidly than larger companies.” It’s an oft-made claim. “Small-caps … [Read more...] about The Myth of Small-Cap Outperformance