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The Markets, Fed Hikes And The Trump Rally
March 28, 2017
Comment On March 30, 2017 at 9 AM CT (10 AM ET, 7 AM PT and 15:00 BST) Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Earlier this month the Fed hiked rates for the third time. Since the first hike in December 2015, stocks… Continue reading The Markets, Fed Hikes And The Trump Rally
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Polarization And Populism Are Now The Norm
March 28, 2017
The Guardian (UK) – Larry Elliott: Populism is the result of global economic failure The rise of populism has rattled the global political establishment. Brexitcame as a shock, as did the victory of Donald Trump. Much head-scratching has resulted as leaders seek to work out why large chunks of their electorates are so cross. The… Continue reading Polarization And Populism Are Now The Norm
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Economic Inequality And The Mortality Crisis
March 28, 2017
New Economic Thinking – Mortality Crisis Redux: The Economics of Despair There are, of course, direct economic effects of such dramatic demographic transitions. In the case of Russia, it was estimated that the effects on GDP growth could have been as high as 2.7%. While such an economic impact is highly unlikely in the US, the… Continue reading Economic Inequality And The Mortality Crisis
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U.S. Equities Showing Signs of Uncertainty Regarding Tax Reform
March 28, 2017
Bloomberg – Watch These Stocks as Barometer for Chances of Trump Tax Reform Goldman high-tax index loses outperformance versus S&P 500 The simplest measure is a basket of firms that have the highest effective tax rates, including Goodyear Tire & Rubber Co. and Alliance Data Systems Corp. If the chances for passing cuts to corporate rates… Continue reading U.S. Equities Showing Signs of Uncertainty Regarding Tax Reform
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Wide Spread Between U.S. And German 10-Year Yields
March 28, 2017
The Economist – The unusual gap between American and European bond yields America has the world’s largest economy and a strong currency, yet it costs its government more to borrow than Italy’s AMERICA may be the world’s largest economy, but these days its government pays more than many others to borrow money. Its ten-year bond yields… Continue reading Wide Spread Between U.S. And German 10-Year Yields
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The Yen And The Carry Trade
March 28, 2017
Bloomberg Business – The Biggest Risk From the Dollar’s Drop May Not Be What You Would Guess A high-risk corner of the $5.1 trillion-a-day currency market has become the collateral damage of the dollar selloff. Whipsawed by the greenback and confronted by U.S. policy confusion, carry trades were supposed to be a rare bright spot for… Continue reading The Yen And The Carry Trade
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Is The Stock Market Entering An Early Stage Of A Correction?
March 28, 2017
Barron’s – Michael Kahn: The Market Apocalypse Has Been Postponed That would be a good place to consider turning bullish again, as long as politics – especially tax reform – doesn’t pull the rug out. If it appears that tax reform is running into trouble, then the rally will have lost its raison d’être. The Trump… Continue reading Is The Stock Market Entering An Early Stage Of A Correction?
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Recession Talk
March 28, 2017
CNBC – US heading for recession after 2 years of unsustainable growth, economist says The U.S. is headed for a recession in the next two years as excessive fiscal stimulus from the President Donald Trump administration takes the economy into unsustainable territory, Adam Posen, president of the Peterson Institute for International Economics, told CNBC Tuesday. Posen,… Continue reading Recession Talk
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Searching For Yield
March 28, 2017
The Financial Times – Investors primed for a pick-up in new corporate bond sales Overall, US investment grade bond sales slid by a third to $18bn last week from the previous week, according to Dealogic. But an improvement from early declines across US stock markets on Monday, when the S&P 500 clawed back most of its… Continue reading Searching For Yield
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U.S. Shale Companies Continue To Burn Cash
March 28, 2017
The Economist – America’s shale firms don’t give a frack about financial returns Shale’s second coming is testament to Texan grit. But the industry’s never-say-die spirit may explain why it has done next to nothing about its dire finances. The business has burned up cash for 34 of the last 40 quarters, according to figures on… Continue reading U.S. Shale Companies Continue To Burn Cash
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Has The ECB Overstepped Its Mandate?
March 28, 2017
The Financial Times – ECB criticised for overstepping mandate in eurozone crisis The European Central Bank improperly veered into political activity during the eurozone crisis and should withdraw from the “troika” of international bailout monitors, according to anti-corruption watchdog Transparency International. In a review of the central bank’s actions, carried out in co-operation with ECB… Continue reading Has The ECB Overstepped Its Mandate?