Lioness Associates, Inc.

Economic & Corporate Risk/Yield Reports

March 27, 2013  -- USA Economy for April 2013

The USA economy has been surging ahead since the early part of the year and there are indications that this trend will continue ... just after a quick pit stop.  Cyprus was one issue that has occurred and is on the way to being resolved, the next is North Korea which is likely just beginning.  This could turn into a war of words or ... maybe worse.  At this time, only transient factors are showing in the USA charts (the global graph is different though), suggesting that for the time being, this may just be a war of words from the perspective of the USA ......  but, North Korea's graphs suggests something else (that graph will be posted later this week).

The next important area in the 2013 graphs is the July/August peak moving to a low in the risk area during the September 2013 period.  There could be many reasons for this but, the most obvious is that the Fed starts to look at tightening it's monetary policy as the economy gets too frothy.  It should be noted that my opinion of this is that interest rates being kept  too low for too long caused the real estate bubble in 2007 and all indications are that we are on the verge of creating another bubble with keeping interest rates too low.