RSM's Brusuelas sees a 'healthy' market correction amid economic strength

Joseph Brusuelas, chief economist at RSM, says the economy is reasonably healthy and has been resilient amid difficult headlines, which make it likely to accelerate as rate cuts, tax cuts and deregulation kick in and provide a spending boost. At the same time, Brusuelas says he thinks the market is building "bubbles and period of over-speculation where there's a concentration of risk in one area of the equities market," which could lead to "a healthy correction" that brings the market back to earth and squeezes out the speculators.

David Trainer, founder and president at New Constructs, has long disliked the electric vehicle industry, noting that the stocks are priced more on hype than on any proven ability to deliver. Today he puts Luci Group in The Danger Zone, noting that the company has persistent ongoing losses, high cash burn, heavy shareholder dilution and is facing profitable competitors in a market that is seeing demand fall. Worse yet, he says the stock is priced as if it will "sell more vehicles than the best-selling passenger car in America."

Sam Bourgi of Investors Observer discusses the latest Big Mac Housing Index, which showed that it now takes nearly 71,000 Big Macs from McDonald's priced at the national average, to buy the median-price house in the United States, and what those changing dynamics — housing prices that actually have fallen in the last three years against rising inflation on food prices — means for the broad economy.