Bear Mountain Capital Inc.

The Brexit and What It Means

| June 24, 2016

    Yesterday, the United Kingdom voted to leave the European Union. While a close vote was highly anticipated, the markets had discounted the possibility of a “Brexit” the last several days by pushing the markets upward. After the final results came out last night, the markets had to reverse course. The “Leave” group had voted 51.9% in favor of leaving the union. Unsurprisingly, the result was a big sell-off today across…

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Commodities?!? Really!?

| November 5, 2015

How do you solve a problem like commodities? Sound of Music, anyone? Well, if you are not a fan of musicals, that is okay. Chances are at this point in the market cycle, you are probably not a fan of commodities, either. Commodity prices are clearly a hot-topic right now and not in a good way.  As anyone who owns commodities knows, returns for the asset class have been more than frustrating the…

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The Fed, Rising Rates and Senior Bank Loans?

| September 18, 2013

In the media there is a lot of talk about the Federal Reserve Board (“the Fed”) and its chairman, Ben Bernanke. The Fed is often charged with managing the country’s monetary policy. Monetary policy helps manage the amount of actual money in the financial system and helps establish interest rates for US borrowers. Currently, the Fed is taking extraordinary steps to keep interest rates low in order to help facilitate…

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Do Not Make Me Say It Again…

| December 7, 2012

Nearly, every parent or child has uttered or heard the words “Don’t make me say it again…” at some point in their life. That is exactly the thought that comes to mind when I think about the dominating headline of the day: Fiscal Cliff. There I said it, but don’t make me say it again. It is exhausting to discuss the legislative gridlock we’ve experienced going on 3 years now….

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The Volcker Rule

| March 27, 2012

A very important topic that unfortunately is not getting enough attention by the public… below some insightful commentary from the CFA Institute into the Volcker Rule and its importance to the long-term health of our financial system: “It is not hard to see the delicate balance this rule-making situation requires. Too strict a rule and important players in the provision of market stability and liquidity are impaired, to the detriment…

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A Recovery?

| March 20, 2012

Are we looking at a U.S. economic recovery?  Quite possibly.  How long could this recovery last?  It depends.  What does it depend on?  It depends on the following: * Housing * Unemployment * Europe * China * Iran Lets start with Housing: its been a long-slog for the housing and residential construction market.  However, it looks like we are turning a corner.  In the first few months of this year…

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Bill Gross on Greek Debt

| March 9, 2012

Gross on the net affect of the Greece debt restructuring. It is now more expensive for any government to borrow money, bond investors will demand higher yields for the increased probability governments will be forced into restructuring. (Click here to read Bloomberg.com article)  

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Why the rally today?

| November 30, 2011

Why are we seeing this rally today? Well, aside from some of the positive economic news regarding higher then expected sales of US existing homes, as well as new job hires there was a significant policy move by five central banks, including the Fed, Europe Central Bank, Bank of Japan, Bank of England and Swiss National Bank to help financial institutions obtain liquidity in times of crisis. Essentially, a country’s…

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Household Debt – How Bad Is It?

| September 27, 2011

The primary drag on economic recovery is the sheer size of US household debt.  It will take many years to bring the averages down.  The following excerpt tells us a lot: “From 1952 to 1979, the average ratio of household debt to gross disposable income was 57%, but over the past three decades the averages steadily, and then dramatically, climbed higher. In the 1980s, it averaged 69%; in the 1990s…

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Growing Pains

| September 22, 2011

Despite the negative economic outlook by the Fed on US and global growth, as well as the concerns in Europe regarding sovereign defaults, US leading economic indicators actually rose last month.  The primary reason is due to an increase in the money supply, because consumers are reserving their cash, keeping it in bank accounts.  This is a long-term positive, because it will lead to more money to lend in the…

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